Schroders has executed a GBP2.6 billion equity risk management strategy for the South Yorkshire Pensions Authority (SYPA), understood to be one of the largest of its type undertaken in the Local Government Pension Scheme space.
The strategy has been co-designed by Schroders’ Portfolio Solutions team with the aim of mitigating losses for SYPA in the event of a significant decline in equity markets.
Over the last few years SYPA has seen significant increases in its portfolio and was keen to manage its funding position through to the next valuation.
Schroders worked closely with SYPA and its consultant Mercer to deliver this ‘put spread collar’ approach. While maximising downside protection was the core focus, the strategy was designed to manage total cost and to maintain as much…
