Local government plan Merseyside Pension Fund, Liverpool, England, has selected Schroders Solutions to implement a £3.8 billion ($5 billion) equity protection strategy, according to a news release.
The strategy is intended to enable the plan to maintain its equity exposures in order to meet its long-term performance objectives, while effectively managing downside risk. It is also supposed to provide support for the fund's private asset positioning, and ensure a balanced allocation between liquid and illiquid exposures, even in the event of a sell-off in listed markets.
Schroders, a U.K. asset management firm overseeing £750 billion, has previously had its solutions arm appointed by the Northern Local Government Pension Scheme, Manchester, England, on an equity protection strategy.
Peter Wallach, director of pensions at Merseyside Pension Fund, said in the news release: "We are very pleased with the advice and support of Schroders Solutions in working with us to implement an equity protection strategy that aligns with changes to our investment strategy and provides some stability in the funding level.”
Merseyside Pension Fund had £10.8 billion in assets as of March 31 and is due for its triennial valuation in 2025.
Schroders Solutions offers services including fiduciary management, outsourced chief investment officer, and cashflow-driven investing, and has £221 billion in assets.
