<?xml version="1.0" encoding="UTF-8"?><rss version="2.0" xmlns:content="http://purl.org/rss/1.0/modules/content/" xmlns:wfw="http://wellformedweb.org/CommentAPI/" xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:atom="http://www.w3.org/2005/Atom" xmlns:sy="http://purl.org/rss/1.0/modules/syndication/" xmlns:slash="http://purl.org/rss/1.0/modules/slash/" > <channel> <title>News Archive - Isio</title> <atom:link href="https://www.isio.com/news/feed/" rel="self" type="application/rss+xml" /> <link>https://www.isio.com/news/</link> <description></description> <lastBuildDate>Tue, 12 Nov 2024 18:20:06 +0000</lastBuildDate> <language>en-GB</language> <sy:updatePeriod> hourly </sy:updatePeriod> <sy:updateFrequency> 1 </sy:updateFrequency> <generator>https://wordpress.org/?v=6.6.2</generator> <image> <url>https://www.isio.com/app/uploads/2024/09/Website-thumbnail-512x512-1-95x95.png</url> <title>News Archive - Isio</title> <link>https://www.isio.com/news/</link> <width>32</width> <height>32</height> </image> <item> <title>Isio completes £20 million buy-in with Utmost Life and Pensions, providing brokering and covenant advice for defined benefit scheme</title> <link>https://www.isio.com/news/isio-completes-20-million-buy-in-with-utmost-life-and-pensions-providing-brokering-and-covenant-advice-for-defined-benefit-scheme/</link> <dc:creator><![CDATA[Daniel Owen]]></dc:creator> <pubDate>Wed, 13 Nov 2024 09:30:00 +0000</pubDate> <guid isPermaLink="false">https://www.isio.com/?post_type=news&p=22040</guid> <description><![CDATA[<p>The post <a href="https://www.isio.com/news/isio-completes-20-million-buy-in-with-utmost-life-and-pensions-providing-brokering-and-covenant-advice-for-defined-benefit-scheme/">Isio completes £20 million buy-in with Utmost Life and Pensions, providing brokering and covenant advice for defined benefit scheme</a> appeared first on <a href="https://www.isio.com">Isio</a>.</p> ]]></description> <content:encoded><![CDATA[ <section class="text-wrapper text-block medium-width "> <div class="container"> <div class="acf-innerblocks-container"> <p><strong>12 November 2024:</strong> Isio has successfully facilitated a £20 million buy-in transaction for a defined benefit scheme. In collaboration with the scheme’s Trustee, and legal advisors DLA Piper, Isio led on brokering the deal and advising on the covenant of the scheme’s insurer, Utmost Life and Pensions (“Utmost”), in addition to their longstanding role as full services Trustee adviser and Scheme Actuary to the scheme.</p> <p>This transaction not only supports the scheme’s de-risking objectives but also marks a significant addition to the bulk purchase annuity (BPA) market, particularly at the smaller end where choice has often been limited. Utmost’s thoughtful entry into the BPA market ensured a streamlined process and a positive outcome for all parties involved.</p> <p><strong>Thomas Ridley, Senior Manager at Isio</strong>, said: “We’re thrilled to have played a part in this successful buy-in with Utmost, supporting the trustee in achieving a secure and stable outcome for the scheme. The team’s expertise in brokering and covenant advice helped the trustee make informed decisions and ensured an efficient process from start to finish.”</p> <p><strong>Chris Halewood, Client Director, at Vidett</strong> added: “Working in collaboration with Isio, DLA Piper, the trustees, and scheme sponsor, we quickly recognised the strength of Utmost’s proposition. Significant time and planning had gone into their entry into the BPA market, which meant the process ran incredibly smoothly. It’s great to see another capable and competitive player in this space, providing options for smaller schemes where choice has been limited.”</p> <p><strong>Gary Needham, Head of BPA Business Development, at Utmost Life and Pensions</strong> noted: “We are delighted to have had the opportunity to work with the Trustee and their advisers to successfully complete this buy-in and secure a positive outcome for their members. The speed with which the transaction was completed is testament to the collaborative and pragmatic partnership between all parties involved.”</p> </div> </div> </section> <p>The post <a href="https://www.isio.com/news/isio-completes-20-million-buy-in-with-utmost-life-and-pensions-providing-brokering-and-covenant-advice-for-defined-benefit-scheme/">Isio completes £20 million buy-in with Utmost Life and Pensions, providing brokering and covenant advice for defined benefit scheme</a> appeared first on <a href="https://www.isio.com">Isio</a>.</p> ]]></content:encoded> </item> <item> <title>Isio launches new individual service to support NHS employees with pensions tax roll-back</title> <link>https://www.isio.com/news/isio-launches-new-individual-service-to-support-nhs-employees-with-pensions-tax-roll-back/</link> <dc:creator><![CDATA[Daniel Owen]]></dc:creator> <pubDate>Thu, 07 Nov 2024 18:16:01 +0000</pubDate> <guid isPermaLink="false">https://www.isio.com/?post_type=news&p=22042</guid> <description><![CDATA[<p>The post <a href="https://www.isio.com/news/isio-launches-new-individual-service-to-support-nhs-employees-with-pensions-tax-roll-back/">Isio launches new individual service to support NHS employees with pensions tax roll-back</a> appeared first on <a href="https://www.isio.com">Isio</a>.</p> ]]></description> <content:encoded><![CDATA[ <section class="text-wrapper text-block small-width "> <div class="container"> <div class="acf-innerblocks-container"> <p><strong>7th November 2024 – </strong>Isio, a leading independent provider of pensions and employee benefits consultancy, announces the launch of its new individual service designed to streamline support for NHS employees affected by the McCloud pensions tax roll-back.</p> <p>The McCloud remedy addresses age discrimination in the 2015 public service pension reforms. It involves rolling back the 2015 scheme benefits into the previous final salary schemes for affected public sector members. But many senior NHS staff will have to also revisit up to seven years of self-assessment tax forms by 31 January 2025 (or 3 months after being notified if later).</p> <p>The new service will help these NHS Pension Scheme members, who will receive a Remediable Pension Savings Statement (RPSS), to collect the required data and submit it to HMRC. Isio’s service manages the entire process, allowing members to easily claim tax refunds where appropriate (and in some cases pay additional tax charges). The service is also be available for senior police employees affected by the same issue.</p> <p>Isio’s new user-friendly platform offers a “one-stop-shop” solution to address the challenges faced by individual NHS staff, taking on the heavy lifting required by this process. Isio has an experienced team equipped with the latest digital tools and knowledge of the NHS Pension Scheme and pensions tax matters. The service has been designed so that the fees are compensable under the NHS’s McCloud Cost Claim Back Scheme meaning individuals should not be out of pocket.</p> <p><strong>Paul Moffatt, Director and Head of Healthcare at Isio,</strong> said: “Our new service is designed to simplify the complex process of managing tax positions to ensure senior NHS staff meet their deadline with ease. By leveraging the latest technology and our deep expertise in pensions and tax, we can provide robust support to help them navigate these changes effectively. This service offers a straightforward and efficient solution at no expected cost to the individuals.”</p> <p>For more information about the McCloud Remedy, please visit: <a href="https://mccloud.isio.com/nhs-pensions-remedy-and-tax/" target="_blank" rel="noreferrer noopener">https://mccloud.isio.com/nhs-pensions-remedy-and-tax/</a> </p> </div> </div> </section> <section class="bg-grey-dient"> <div class="pt-20"> <div class="container grid md:grid-cols-2 md:gap-36"> <div> <h2 class="text-brandGreen-100 text-[2.875rem] font-semibold mb-12 leading-[4.25rem] md:text-[4.75rem]">Get in touch </h2> </div> <div> <p class="text-black text-[1.1875rem] font-normal mb-4"></p> </div> </div> </div> <div class="container hidden md:block pt-16 pb-10"> <div class="flex flex-row justify-start"> <div class="text-black transition-opacity duration-500"> <img decoding="async" class="h-72 w-72 mx-auto rounded-full max-w-none mb-5 object-cover" src="https://www.isio.com/app/uploads/2023/11/Paul-Moffatt.png" alt="Image"> <strong class="text-brandGreen-100 text-[1.175rem] font-medium">Paul Moffatt</strong> <p class="text-black text-lg font-light mb-2">Director & Leeds Office Head</p> <p class="text-black mb-3"></p> <p class="text-black text-lg font-light"></p> <a class="text-brandGreen-100 block hover:underline text-lg font-light" href="mailto:paul.moffatt@isio.com">paul.moffatt@isio.com</a> <a href="https://www.isio.com/person/paul-moffatt/" class="mx-auto btn-primary btn-outline mt-10">See full profile</a> </div> </div> </div> </div> <div class="hidden md:block container text-center pt-5 md:pb-40"> <a class=" mx-auto btn-primary " href="/our-people">Our people</a> </div> </section> <section class="md:hidden bg-grey-dient pt-10"> <div class="container quoteSwiper overflow-hidden"> <div class="flex justify-center w-full pt-16"> <div class=""> <div class="text-black transition-opacity duration-500 flex flex-col justify-center"> <img decoding="async" class="h-72 w-72 mx-auto rounded-full max-w-none mb-5 object-cover" src="https://www.isio.com/app/uploads/2023/11/Paul-Moffatt.png" alt="Image"> <strong class="text-brandGreen-100 text-[1.175rem] font-medium">Paul Moffatt</strong> <p class="text-black text-lg font-light mb-2">Director & Leeds Office Head</p> <p class="text-black mb-3"></p> <p class="text-black text-lg font-light"></p> <a class="text-brandGreen-100 block hover:underline text-lg font-light" href="mailto:paul.moffatt@isio.com">paul.moffatt@isio.com</a> <a href="https://www.isio.com/person/paul-moffatt/" class="mx-auto btn-primary btn-outline mt-10 items-center ">See full profile</a> </div> </div> </div> </div> <div class="md:hidden container text-center mt-20 mb-8"> <a class=" mx-auto btn-primary " href="/our-people">Our people</a> </div> </section> <p>The post <a href="https://www.isio.com/news/isio-launches-new-individual-service-to-support-nhs-employees-with-pensions-tax-roll-back/">Isio launches new individual service to support NHS employees with pensions tax roll-back</a> appeared first on <a href="https://www.isio.com">Isio</a>.</p> ]]></content:encoded> </item> <item> <title>Isio announces successful closing of Aquiline investment</title> <link>https://www.isio.com/news/isio-announces-successful-closing-of-aquiline-investment/</link> <dc:creator><![CDATA[Gerry Wilson]]></dc:creator> <pubDate>Wed, 30 Oct 2024 09:20:19 +0000</pubDate> <guid isPermaLink="false">https://www.isio.com/?post_type=news&p=21814</guid> <description><![CDATA[<p>The post <a href="https://www.isio.com/news/isio-announces-successful-closing-of-aquiline-investment/">Isio announces successful closing of Aquiline investment</a> appeared first on <a href="https://www.isio.com">Isio</a>.</p> ]]></description> <content:encoded><![CDATA[ <section class="text-wrapper text-block medium-width "> <div class="container"> <div class="acf-innerblocks-container"> <h2 class="wp-block-heading" id="h-challenger-brand-completes-for-next-phase-of-success"><strong>Challenger brand completes for next phase of success</strong></h2> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <p><strong>30 October 2024</strong>: Isio, one of the fastest growing pensions, investment, reward & benefit and wealth advisory businesses in the UK, today announces the completion of its new investment from Aquiline Capital Partners LP (“Aquiline”), a private investment specialist in financial services and technology. The investment, having received regulatory approval, will support Isio’s next phase of growth. <br> <br>Isio launched to challenge the status quo in pensions, benefits, and investment advisory. It has experienced significant growth over the past four years, more than doubling revenue, profit and headcount, and now employs 1,200 people across 10 UK offices. <br> <br>The new investment from Aquiline, which has deep experience in the global retirement and wealth management services sectors, will support Isio to continue its ambitious growth trajectory with a focus on delivering value for clients through innovation. <br> <br><strong>Andrew Coles, Chief Executive of Isio, commented: </strong>“Aquiline’s investment enables us to embark on our next phase of growth and continue to disrupt the market for pensions, investment, employee benefits and wealth advice. This will ultimately bring better outcomes for our clients, people and society. I am looking forward to leading the team during the exciting next chapter of our Isio journey with Aquiline as a partner. We have had an exceptional four years with Exponent and I would like to thank the team and our board for their support and expertise.” </p> <p> <br><strong>Igno van Waesberghe, Managing Partner at Aquiline, commented:</strong> “We are impressed by the quality of Isio’s business and the breadth and depth of innovative solutions it offers in sectors supported by long-term structural growth trends. We are excited to provide our backing to the team to allow them to capitalise on the significant opportunities that lie ahead.” </p> <p><strong>Tim Easingwood, Partner at Exponent, commented:</strong> “We have been delighted to partner with Isio from the start and be part of the transformation from carve out to the thriving advisory business it is today. We are confident that Isio will continue to go from strength to strength with Aquiline’s investment and wish everyone in the business every success in this exciting next step in their journey.” </p> </div> </div> </section> <p>The post <a href="https://www.isio.com/news/isio-announces-successful-closing-of-aquiline-investment/">Isio announces successful closing of Aquiline investment</a> appeared first on <a href="https://www.isio.com">Isio</a>.</p> ]]></content:encoded> </item> <item> <title>Persistently strong LGPS funding suggests the need for a new stable contribution rate</title> <link>https://www.isio.com/news/persistently-strong-lgps-funding-suggests-the-need-for-a-new-stable-contribution-rate/</link> <dc:creator><![CDATA[Daniel Owen]]></dc:creator> <pubDate>Thu, 24 Oct 2024 09:04:46 +0000</pubDate> <guid isPermaLink="false">https://www.isio.com/?post_type=news&p=21781</guid> <description><![CDATA[<p>The post <a href="https://www.isio.com/news/persistently-strong-lgps-funding-suggests-the-need-for-a-new-stable-contribution-rate/">Persistently strong LGPS funding suggests the need for a new stable contribution rate</a> appeared first on <a href="https://www.isio.com">Isio</a>.</p> ]]></description> <content:encoded><![CDATA[ <section class="text-wrapper text-block medium-width "> <div class="container"> <div class="acf-innerblocks-container"> <ul class="wp-block-list"> <li><em>Isio’s Low-Risk Funding Index reveals the LGPS funding level remained consistently strong through Q3 2024, ending at 112% with a surplus of £44bn</em></li> <li><em>This strong funding position results from asset values exceeding £410bn for the first time and inflation levels falling</em></li> <li><em>This month has seen further funding improvements to a new record high of 118% with a surplus of £64bn</em></li> <li><em>With much improved market conditions now prevailing for over two years, should the LGPS consider setting a new lower “stable contribution rate”?</em></li> </ul> <p><strong>24 October 2024: </strong>The latest release of Isio’s Low-Risk Funding Index reveals the aggregate funding level for the 87 funds participating in the Local Government Pension Scheme (LGPS) in England and Wales has remained at 112% over the period 30 June 2024 to 30 September 2024.<br><br>Over the period, further improvements were made to asset values (mainly equities) as well as small reductions to future inflation expectations. These positive changes were offset with falling gilt yields which slightly increased the value of liabilities. Of the 87 participating funds, 69 have funding levels of 100% or higher, with levels ranging from 73% to 168% funded. <br><br>At the previous actuarial valuation date, 31 March 2022, the aggregate low-risk funding position was 67% and none of the 87 funds had a funding level of 100% or higher on a low-risk basis. With only five months to go until the 31 March 2025 actuarial valuation, these results provide further evidence that ongoing funding levels for LGPS funds and their participating employers are expected to be higher than at 31 March 2022, meaning that ongoing surpluses will have increased further (ongoing funding levels allow for expected future returns of growth assets).<br><br>If the current market conditions prevail, the current level of LGPS contributions is expected to continue to drive over-funding. This gives rise to the flexibility to pursue a new, lower stable contribution rate.<br><br>The LGPS regulations say that stable contributions are desirable. However, the term “stable” is not defined, nor is “desirable”. While stable could imply no or little change from existing rates, Isio suggests an alternative view would be to look forward to see what rates provide long-term sustainability with a measure of prudence.<strong><br><br>Steve Simkins, Partner and public services leader at Isio, says:</strong> “With less than six months to go until the 2025 actuarial valuation, and over two years of very good market conditions, the valuation outcome is looking more and more positive. This is good news for the UK economy as many local government, housing and educational organisations will have extra funding to support regional growth.<br><br>“Average LGPS employer contribution rates have been over 20% for ten years, but the step-change in market conditions since the 2022 actuarial valuation indicates that a new, lower stable contribution rate can be found. An average LGPS employer contribution rate of 15% of salaries will provide over £2bn of extra funding each year for local government employers.</p> <p><strong>Steve continues: </strong>“The low-risk measure of the average employer cost of future LGPS benefits is currently around 17% of salaries. At the same time, the aggregate low-risk surplus of £44bn as at 30 September 2024 can support a lower contribution rate of 15% for over 50 years. The surplus can also provide a significant funding buffer to stabilise future funding variances in the medium-term, noting that the LGPS’s growth assets would be expected to generate even more future surplus over the long-term.<br><br>“Whilst 15% might be the right new average contribution rate for the LGPS, the LGPS is not “one size fits all” as there are a wide range of funding positions across the funds. For the first time we have funds which are over 100% funded on a low-risk basis and so we expect to see a divergence of risk-return positions. This means that the range of employer contributions is likely to broaden as the average rate falls.”</p> </div> </div> </section> <section class="bg-grey-dient"> <div class="pt-20"> <div class="container grid md:grid-cols-2 md:gap-36"> <div> <h2 class="text-brandGreen-100 text-[2.875rem] font-semibold mb-12 leading-[4.25rem] md:text-[4.75rem]">Get in touch </h2> </div> <div> <p class="text-black text-[1.1875rem] font-normal mb-4"></p> </div> </div> </div> <div class="container hidden md:block pt-16 pb-10"> <div class="flex flex-row justify-start"> <div class="text-black transition-opacity duration-500"> <img decoding="async" class="h-72 w-72 mx-auto rounded-full max-w-none mb-5 object-cover" src="https://www.isio.com/app/uploads/2023/11/Steve-simkins.jpg" alt="Image"> <strong class="text-brandGreen-100 text-[1.175rem] font-medium">Steve Simkins</strong> <p class="text-black text-lg font-light mb-2">Partner</p> <p class="text-black mb-3"></p> <p class="text-black text-lg font-light"></p> <a class="text-brandGreen-100 block hover:underline text-lg font-light" href="mailto:steve.simkins@isio.com">steve.simkins@isio.com</a> <a href="https://www.isio.com/person/steve-simkins/" class="mx-auto btn-primary btn-outline mt-10">See full profile</a> </div> </div> </div> </div> <div class="hidden md:block container text-center pt-5 md:pb-40"> <a class=" mx-auto btn-primary " href="/our-people">Our people</a> </div> </section> <section class="md:hidden bg-grey-dient pt-10"> <div class="container quoteSwiper overflow-hidden"> <div class="flex justify-center w-full pt-16"> <div class=""> <div class="text-black transition-opacity duration-500 flex flex-col justify-center"> <img decoding="async" class="h-72 w-72 mx-auto rounded-full max-w-none mb-5 object-cover" src="https://www.isio.com/app/uploads/2023/11/Steve-simkins.jpg" alt="Image"> <strong class="text-brandGreen-100 text-[1.175rem] font-medium">Steve Simkins</strong> <p class="text-black text-lg font-light mb-2">Partner</p> <p class="text-black mb-3"></p> <p class="text-black text-lg font-light"></p> <a class="text-brandGreen-100 block hover:underline text-lg font-light" href="mailto:steve.simkins@isio.com">steve.simkins@isio.com</a> <a href="https://www.isio.com/person/steve-simkins/" class="mx-auto btn-primary btn-outline mt-10 items-center ">See full profile</a> </div> </div> </div> </div> <div class="md:hidden container text-center mt-20 mb-8"> <a class=" mx-auto btn-primary " href="/our-people">Our people</a> </div> </section> <p>The post <a href="https://www.isio.com/news/persistently-strong-lgps-funding-suggests-the-need-for-a-new-stable-contribution-rate/">Persistently strong LGPS funding suggests the need for a new stable contribution rate</a> appeared first on <a href="https://www.isio.com">Isio</a>.</p> ]]></content:encoded> </item> <item> <title>Isio Quarterly October 2024</title> <link>https://www.isio.com/news/isio-quarterly-october-2024/</link> <dc:creator><![CDATA[Daniel Owen]]></dc:creator> <pubDate>Thu, 17 Oct 2024 14:17:03 +0000</pubDate> <guid isPermaLink="false">https://www.isio.com/?post_type=news&p=21404</guid> <description><![CDATA[<p>Isio’s quarterly pensions update for sponsors, summarising key events from the quarter and looking ahead to what’s coming up.</p> <p>The post <a href="https://www.isio.com/news/isio-quarterly-october-2024/">Isio Quarterly October 2024</a> appeared first on <a href="https://www.isio.com">Isio</a>.</p> ]]></description> <content:encoded><![CDATA[ <section x-data="{ activeTab: 0 }"> <div class="tab_block relative bg-brandGrey-100 pt-0"> <div class="md:container lg:pt-36 relative z-10"> <div class="p-5 md:p-0 "> <h2 class="text-5xl lg:text-7xl text-brandGreen-100 mb-[25px] ">Welcome to IQ</h2> <p class="mb-[65px] text-xl md:w-1/2" text-brandGrey-100>Welcome to Isio’s latest quarterly pensions update for sponsors, summarising key events from the quarter and looking ahead to what’s coming up.</p> </div> <div class="hidden md:block border-b-[6px] border-brandGreen"> <nav class="isolate md:flex w-full" aria-label="Tabs"> <a @click="activeTab = 0" :class="{ 'text-white bg-brandGreen-100': activeTab === 0, 'text-brandGreen-100 bg-brandGrey-100' : activeTab !== 0 }" class=" text-lg xl:text-[1.375rem] group relative py-4 px-6 font-light md:font-medium focus:z-10 hover:cursor-pointer block hover:text-white hover:bg-brandGreen-100 border-r border-t border-l border-brandGreen "> <span>Financial conditions update</span> </a> <a @click="activeTab = 1" :class="{ 'text-white bg-brandGreen-100': activeTab === 1, 'text-brandGreen-100 bg-brandGrey-100' : activeTab !== 1 }" class=" text-lg xl:text-[1.375rem] group relative py-4 px-6 font-light md:font-medium focus:z-10 hover:cursor-pointer block hover:text-white hover:bg-brandGreen-100 border-r border-t border-l border-brandGreen "> <span>New Funding Code</span> </a> <a @click="activeTab = 2" :class="{ 'text-white bg-brandGreen-100': activeTab === 2, 'text-brandGreen-100 bg-brandGrey-100' : activeTab !== 2 }" class=" text-lg xl:text-[1.375rem] group relative py-4 px-6 font-light md:font-medium focus:z-10 hover:cursor-pointer block hover:text-white hover:bg-brandGreen-100 border-r border-t border-l border-brandGreen "> <span>Virgin Media</span> </a> <a @click="activeTab = 3" :class="{ 'text-white bg-brandGreen-100': activeTab === 3, 'text-brandGreen-100 bg-brandGrey-100' : activeTab !== 3 }" class=" text-lg xl:text-[1.375rem] group relative py-4 px-6 font-light md:font-medium focus:z-10 hover:cursor-pointer block hover:text-white hover:bg-brandGreen-100 border-r border-t border-l border-brandGreen "> <span>Run-on survey of professional trustees</span> </a> <a @click="activeTab = 4" :class="{ 'text-white bg-brandGreen-100': activeTab === 4, 'text-brandGreen-100 bg-brandGrey-100' : activeTab !== 4 }" class=" text-lg xl:text-[1.375rem] group relative py-4 px-6 font-light md:font-medium focus:z-10 hover:cursor-pointer block hover:text-white hover:bg-brandGreen-100 border-r border-t border-l border-brandGreen "> <span>Out-of-model investment risks</span> </a> <a @click="activeTab = 5" :class="{ 'text-white bg-brandGreen-100': activeTab === 5, 'text-brandGreen-100 bg-brandGrey-100' : activeTab !== 5 }" class=" text-lg xl:text-[1.375rem] group relative py-4 px-6 font-light md:font-medium focus:z-10 hover:cursor-pointer block hover:text-white hover:bg-brandGreen-100 border-r border-t border-l border-brandGreen "> <span>Automatic Enrolment in the Republic of Ireland </span> </a> <a @click="activeTab = 6" :class="{ 'text-white bg-brandGreen-100': activeTab === 6, 'text-brandGreen-100 bg-brandGrey-100' : activeTab !== 6 }" class=" text-lg xl:text-[1.375rem] group relative py-4 px-6 font-light md:font-medium focus:z-10 hover:cursor-pointer block hover:text-white hover:bg-brandGreen-100 border-r border-t border-l border-brandGreen "> <span>Looking forward to next quarter</span> </a> </nav> </div> </div> </div> <div class="bg-brandGreen-100 pb-10 hidden md:block bg-no-repeat bg-left-bottom relative z-10 " style="background-image:url('')"> <div class="container bg-brandGreen-100 "> <div x-show="activeTab === 0" class="grid md:grid-cols-2 pt-12 gap-x-24"> <!-- Content for the tab goes here --> <div class=""> <div class="mb-10"> <p class="text-2xl font-light text-white"><strong>Change since 30 June 2024<strong /></p> </div> <div class="text-white text-xl font-light"> <p><img fetchpriority="high" decoding="async" class="aligncenter wp-image-21587 size-full" src="https://www.isio.com/app/uploads/2024/10/IQ-Isio-Quarterly-market-update-2.gif" alt="" width="600" height="250" /></p> </div> </div> <div> <div class="text-white text-xl font-light"> <p> </p> <p><strong>Commentary</strong></p> <ul> <li>It’s been a quiet quarter, and we don’t expect scheme’s funding positions to have changed materially either way in most cases.</li> <li>Gilt yields fell by c. 10-15 basis points over the quarter, with slightly lower falls of 5 – 10 basis points in long-term inflation expectations. As both these movements have been in the same direction they will largely offset each other for funding valuations.</li> <li>Equity markets were up slightly, with UK equity markets returning c1% over the risk-free rate.</li> <li>Credit spreads increased slightly (less than 5 basis points) over the quarter – and thus accounting positions may have improved slightly for most schemes.</li> </ul> <a class="my-5 btn-primary btn-white " href="https://www.isio.com/app/uploads/2024/10/Accounting-in-Pensions-Post-30-Sep-2024.pdf">Download a full report</a> </div> <p class="text-white text-xl font-medium mb-6"></p> <p class="text-white text-xl font-medium mb-6 mt-6"></p> <div class="md:flex"> </div> </div> </div> <div x-show="activeTab === 1" class="grid md:grid-cols-2 pt-12 gap-x-24"> <!-- Content for the tab goes here --> <div class=""> <div class="mb-10"> <p class="text-2xl font-light text-white"><strong>New DB funding regime in force<strong /></p> </div> <div class="text-white text-xl font-light"> <p><strong>Background</strong></p> <p>After many years of waiting, the new funding code has finally come into force and will apply to valuations with an effective date on or after 22 September 2024. The new code builds on the existing DB funding regime by requiring trustees and sponsors:</p> <p> </p> <ul> <li>to have a <strong>long-term plan</strong> to be at least fully funded on a basis that reflects a<strong> low-dependency</strong> investment strategy by the time their scheme is <strong>significantly mature</strong>; and</li> <li>to make sure their technical provisions reflect the journey plan to get there.</li> </ul> <p> </p> <p>All of this will need to be documented in a new <strong>Statement of Strategy</strong>.</p> <p> </p> <p><strong>Isio’s view</strong></p> <p>With generally improved funding levels across UK DB schemes, the financial impact of the new funding regime may be less than first thought. The first valuations under the new funding code will however still require significant additional work in collaboration with the trustees. Those schemes with late 2024 and early 2025 valuation dates will end up acting as guinea pigs for the rest of the industry as it gets to grips with how the new requirements are applied in practice for the first time.</p> <p> </p> </div> </div> <div> <div class="text-white text-xl font-light"> <p> </p> <p><strong>Why it matters</strong></p> <p>Sponsors should not rely solely on their trustees to understand and reflect the new funding regime at the next valuation. Sponsors should be:</p> <p> </p> <ul> <li>Thinking about what long-term objective to target, and the implications on the technical provisions.</li> <li>Confirming expected time to “significant maturity”, to understand how long you have before the long-term objective should be reached.</li> <li>Start thinking about employer covenant (now a legally defined term under the new regime) with future assessments to focus on company cashflows and “prospects”</li> <li>Consider whether to target the prescriptive “Fast Track” approach to minimise scrutiny from the Pensions Regulator, or the more flexible “Bespoke” approach.</li> </ul> <p> </p> <a class="my-5 btn-primary btn-white " href="https://www.isio.com/insights/decoding-the-new-db-pensions-funding-regime/">Read more</a> </div> <p class="text-white text-xl font-medium mb-6"></p> <p class="text-white text-xl font-medium mb-6 mt-6"></p> <div class="md:flex"> </div> </div> </div> <div x-show="activeTab === 2" class="grid md:grid-cols-2 pt-12 gap-x-24"> <!-- Content for the tab goes here --> <div class=""> <div class="mb-10"> <p class="text-2xl font-light text-white"><strong>Virgin Media case<strong /> </p> </div> <div class="text-white text-xl font-light"> <p><strong>Background</strong></p> <p>In June 2023 the High Court judged that historic amendments made to the Virgin Media scheme between 1997 and 2016 were invalid unless Section 37 actuarial certification was obtained (and could be evidenced) – a ruling which was upheld by the Court of Appeal in July 2024.</p> <p> </p> <p>This case has wider applicability to DB pension schemes which were contracted out between 1997 to 2016 – who could also find that historic amendments are invalid if they don’t have the appropriate documentation.</p> <p> </p> <p><strong>Isio’s view</strong></p> <p>This potentially causes a huge headache for sponsors and trustees alike. The nightmare scenario would be having to unwind historic amendments simply due to gaps in records, rather than because these changes didn’t meet the requirements for certification at the time.</p> <p> </p> <p><span class="TextRun SCXW43260072 BCX8" lang="EN-GB" xml:lang="EN-GB" data-contrast="auto"><span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy" data-ccp-parastyle-defn="{"ObjectId":"efd3e9ea-ca4c-4f48-8da6-62aecf522453|144","ClassId":1073872969,"Properties":[268442635,"21",335559740,"192",201341983,"0",201342446,"1",201342447,"5",201342448,"1",201342449,"1",469777841,"TT Hoves Light",469777842,"",469777843,"TT Hoves Light",469777844,"TT Hoves Light",201341986,"1",469769226,"TT Hoves Light",469775450,"Body copy",201340122,"2",134234082,"true",134233614,"true",469778129,"Bodycopy",335572020,"2",335559685,"3119",335559739,"100",469778324,"Normal"]}">Given </span><span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy">th</span><span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy">e</span> <span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy">potential impact</span><span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy"> based </span><span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy">on a technicality, </span><span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy">v</span><span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy">arious industry </span><span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy">bodies</span> <span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy">are actively lobbying DWP to intervene on this issue</span><span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy"> and</span><span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy"> retrospective</span><span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy">ly</span> <span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy">validat</span><span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy">e</span> <span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy">historic amendments which met all the right conditions for actuarial certification at the time, but where </span><span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy">evidence of this cannot be found</span><span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy">.</span><span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy"> However, it </span><span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy">remains</span><span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy"> unclear whether DWP will step in.</span></span><span class="EOP SCXW43260072 BCX8" data-ccp-props="{"201341983":0,"335559685":0,"335559739":100,"335559740":192}"> </span></p> </div> </div> <div> <div class="text-white text-xl font-light"> <p> </p> <p><strong>Why it matters</strong></p> <p><span data-contrast="auto">For DB schemes going through an insurance or M&A process, there is a more pressing need to understand any potential risks to the underlying obligations.</span></p> <p> </p> <p><span data-contrast="auto">More broadly, auditors are already expecting further investigation into this issue to have commenced, ahead of their next reporting periods – doing nothing is not an option.</span></p> <p> </p> <p><span data-contrast="auto">Finally, sponsors should try to understand any potential changes in benefit obligations – particularly if significant – as these could have funding implications as well as influence strategic pensions decisions.</span><span data-ccp-props="{"201341983":0,"335559685":0,"335559739":100,"335559740":192}"> </span></p> <p> </p> <p><span class="TextRun Highlight SCXW266577915 BCX8" lang="EN-GB" xml:lang="EN-GB" data-contrast="auto"><span class="NormalTextRun SCXW266577915 BCX8">We will be running </span><span class="NormalTextRun SCXW266577915 BCX8">a</span><span class="NormalTextRun SCXW266577915 BCX8"> webinar</span><span class="NormalTextRun SCXW266577915 BCX8"> in the coming months, </span><span class="NormalTextRun SCXW266577915 BCX8">on the implications of the Virgin Media ruling</span><span class="NormalTextRun SCXW266577915 BCX8">. If </span><span class="NormalTextRun SCXW266577915 BCX8">you’d</span><span class="NormalTextRun SCXW266577915 BCX8"> like to receive an invite, please </span></span><span class="TextRun Highlight Underlined SCXW266577915 BCX8" lang="EN-GB" xml:lang="EN-GB" data-contrast="auto"><span class="NormalTextRun SCXW266577915 BCX8">join our <a href="https://share-eu1.hsforms.com/1Dlz5t4JiSEmTgQ-fFhEcoQg43y5?__hstc=150177513.008a8a25881ca8c872ab03c0418d8d69.1728462293003.1729155685255.1729160424604.26&__hssc=150177513.1.1729160424604&__hsfp=1615757629">mailing list</a>.</span></span></p> <p> </p> <a class="my-5 btn-primary btn-white " href="https://share-eu1.hsforms.com/1Dlz5t4JiSEmTgQ-fFhEcoQg43y5?__hstc=150177513.008a8a25881ca8c872ab03c0418d8d69.1728462293003.1729155685255.1729160424604.26&__hssc=150177513.1.1729160424604&__hsfp=1615757629">Join our mailing list</a> </div> <p class="text-white text-xl font-medium mb-6"></p> <p class="text-white text-xl font-medium mb-6 mt-6"></p> <div class="md:flex"> </div> </div> </div> <div x-show="activeTab === 3" class="grid md:grid-cols-2 pt-12 gap-x-24"> <!-- Content for the tab goes here --> <div class=""> <div class="mb-10"> <p class="text-2xl font-light text-white"><strong>Scheme run on survey of professional trustees<strong /></p> </div> <div class="text-white text-xl font-light"> <p><strong>Background</strong></p> <p>With UK DB schemes better funded than they have been for decades, employers and trustees are considering whether to take the opportunity to move to insurance at the earliest opportunity or seek to benefit from surpluses as they emerge. Against this backdrop, we surveyed 83 professional trustees responsible for over £350bn of DB assets to get their views on whether to run on and, for those schemes that do, how to implement this.</p> <p> </p> <p><strong>Isio’s view</strong></p> <p>Over two-thirds of professional trustees believe that the minimum member share of surplus to justify running on is 40% or less. This reflects the views expressed at our recent event for large sponsors that upside should be weighted towards employers who are responsible for funding 100% of any deficits that emerge.</p> <p> </p> <p><span class="TextRun SCXW9092995 BCX8" lang="EN-GB" xml:lang="EN-GB" data-contrast="auto"><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy" data-ccp-parastyle-defn="{"ObjectId":"efd3e9ea-ca4c-4f48-8da6-62aecf522453|144","ClassId":1073872969,"Properties":[268442635,"21",335559740,"192",201341983,"0",201342446,"1",201342447,"5",201342448,"1",201342449,"1",469777841,"TT Hoves Light",469777842,"",469777843,"TT Hoves Light",469777844,"TT Hoves Light",201341986,"1",469769226,"TT Hoves Light",469775450,"Body copy",201340122,"2",134234082,"true",134233614,"true",469778129,"Bodycopy",335572020,"2",335559685,"3119",335559739,"100",469778324,"Normal"]}">Employers </span><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy">looking</span><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy"> to run </span><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy">their schemes</span><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy"> on can be encouraged that trustees are keen to work collaboratively with them</span><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy">.</span> <span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy">T</span><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy">heir biggest concern </span><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy">is likely to </span><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy">be </span><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy">protection on</span><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy"> insolvency which can </span><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy">be </span><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy">improve</span><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy">d</span><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy"> if necessary through </span><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy">contingent </span><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy">arrangements like</span><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy"> escrow</span><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy">s or</span><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy"> parent guarantees.</span></span><span class="EOP SCXW9092995 BCX8" data-ccp-props="{"201341983":0,"335559685":0,"335559739":100,"335559740":192}"> </span></p> </div> </div> <div> <div class="text-white text-xl font-light"> <p> </p> <p><strong>Why it matters</strong></p> <p><span data-contrast="auto">Deciding whether to insure at the earliest opportunity, to run on over the longer term, or something in-between, will be the most financially important decision that most trustees and employers ever agree for their schemes. </span><span data-ccp-props="{"201341983":0,"335559685":0,"335559739":100,"335559740":192}"> </span></p> <p><span data-contrast="auto">The views of the sponsor are crucial – indeed the employers view scored as the most important factor for professional trustees in deciding whether to run on beyond full buy-out funding. However, trustees typically hold much of the power in agreeing the “endgame”, so sponsors need to understand trustee perspectives going into these discussions. </span><span data-ccp-props="{"201341983":0,"335559685":0,"335559739":100,"335559740":192}"> </span></p> <p> </p> <p> </p> <a class="my-5 btn-primary btn-white " href="https://www.isio.com/app/uploads/2024/08/001_Scheme-run-on-%E2%80%93-survey-of-professional-trustees.pdf">View the survey</a> </div> <p class="text-white text-xl font-medium mb-6"></p> <p class="text-white text-xl font-medium mb-6 mt-6"></p> <div class="md:flex"> </div> </div> </div> <div x-show="activeTab === 4" class="grid md:grid-cols-2 pt-12 gap-x-24"> <!-- Content for the tab goes here --> <div class=""> <div class="mb-10"> <p class="text-2xl font-light text-white"><strong>Managing tail risks<strong /></p> </div> <div class="text-white text-xl font-light"> <p><strong>Background</strong></p> <p>Many pension schemes are now well funded and running low risk strategies, and modelled risks metrics like ‘Value-at-Risk’ give the impression that not a lot can go wrong. However, we know from experience that “out of model” risks can and do happen. Over summer, for example, there was significant volatility in Japanese equities – an event which had only a 0.00000000000000000000003% probability of occurrence, and was in the top 5 market movements of all time. Whilst most schemes have limited exposure to this market, it does highlight the potential remaining risk.</p> <p></p> <p><strong>Isio’s view </strong></p> <p>Sponsors and trustees should consider the exposure of their schemes to out of model risks. This review should identify the “pinch points” and understand their impact if the unexpected occurs. Examples of such pinch points include defaults, liquidity, deflation, longevity and IT outages. Where pinch points are identified a plan can be formulated – either to remove the exposure or to improve governance in case the event happens.</p> </div> </div> <div> <div class="text-white text-xl font-light"> <p> </p> <p><strong>Why it matters</strong></p> <p><span data-contrast="auto">If a scheme with 1% asset outperformance over its liabilities has a 10% hit to funding, it would take over 10 years to recover without re-risking or additional cash contributions. </span><span data-contrast="auto">Understanding these types of risks means that sponsors and trustees can be proactive if they occur, giving them the greatest chance of mitigating the impact. The LDI crisis in 2022 was a great example of this, where those with clear pre-agreed frameworks generally fared better.</span><span data-ccp-props="{"201341983":0,"335559685":0,"335559739":100,"335559740":192}"> </span></p> <p> </p> <p><span class="TextRun SCXW229150392 BCX8" lang="EN-GB" xml:lang="EN-GB" data-contrast="auto"><span class="NormalTextRun SCXW229150392 BCX8" data-ccp-charstyle="ui-provider" data-ccp-charstyle-defn="{"ObjectId":"efd3e9ea-ca4c-4f48-8da6-62aecf522453|198","ClassId":1073872969,"Properties":[201342446,"1",201342447,"5",201342448,"1",201342449,"1",469777841,"TT Hoves Light",469777842,"",469777843,"TT Hoves Light",469777844,"TT Hoves Light",201341986,"1",469769226,"TT Hoves Light",469775450,"ui-provider",201340122,"1",134233614,"true",469778129,"ui-provider",335572020,"1",469778324,"Default Paragraph Font"]}">Please </span><span class="NormalTextRun SCXW229150392 BCX8" data-ccp-charstyle="ui-provider">get in touch with</span> </span><a class="Hyperlink SCXW229150392 BCX8" href="mailto:Edward.Andrew@isio.com" target="_blank" rel="noreferrer noopener"><span class="TextRun Underlined SCXW229150392 BCX8" lang="EN-GB" xml:lang="EN-GB" data-contrast="none"><span class="NormalTextRun SCXW229150392 BCX8" data-ccp-charstyle="Hyperlink">Barry.Jones@isio.com</span></span></a><span class="TextRun SCXW229150392 BCX8" lang="EN-GB" xml:lang="EN-GB" data-contrast="auto"><span class="NormalTextRun SCXW229150392 BCX8" data-ccp-charstyle="ui-provider"> to discuss how we could help you to </span><span class="NormalTextRun SCXW229150392 BCX8" data-ccp-charstyle="ui-provider">identify</span><span class="NormalTextRun SCXW229150392 BCX8" data-ccp-charstyle="ui-provider"> and manage remaining risks in your pension scheme</span></span><span class="EOP SCXW229150392 BCX8" data-ccp-props="{"201341983":0,"335559685":0,"335559739":100,"335559740":192}"> </span></p> <a class="my-5 btn-primary btn-white " href="https://www.isio.com/person/barry-jones/">Get in touch</a> </div> <p class="text-white text-xl font-medium mb-6"></p> <p class="text-white text-xl font-medium mb-6 mt-6"></p> <div class="md:flex"> </div> </div> </div> <div x-show="activeTab === 5" class="grid md:grid-cols-2 pt-12 gap-x-24"> <!-- Content for the tab goes here --> <div class=""> <div class="mb-10"> <p class="text-2xl font-light text-white"><strong>Irish Auto-Enrolment launch delayed again!<strong /></p> </div> <div class="text-white text-xl font-light"> <p><strong>Background</strong></p> <p>Ireland is the only OECD country without an Auto-Enrolment (or similar) solution in place. The Government has been considering a solution for decades, and a 1 January 2025 introduction had been quoted. However, much remains to be done including a search for asset managers to provide the default investment strategies, comprehensive public education, and consultation with payroll departments on who the administrative burden will mostly fall. Auto-Enrolment is therefore now expected to come into effect on September 30th 2025.</p> <p> </p> <p><strong>Isio’s view</strong></p> <p>Auto-Enrolment is overwhelmingly welcomed, particularly given the success in the UK and globally. The 6% matching contributions in 10 years’ time (with a 33% government uplift) will bring contributions well above the UK’s current Auto-Enrolment minimums and more in line with what we believe is a reasonable level of contributions to support retirement. The delays are understandable, but more clarity should be provided on the remaining design areas so that employers can plan effectively.</p> </div> </div> <div> <div class="text-white text-xl font-light"> <p> </p> <p><strong>Why it matters</strong><br /> Auto-enrolment is delayed, but it is coming! It will have a cost and administrative impact on all employers and employees in Ireland. Employers should consider their Irish pensions strategy now and make sure the pensions in place are compliant before Auto-Enrolment arrives. This will help to protect employees from potentially worse off benefit solutions, attract and retain the best staff, and get ahead of a potentially clunky and burdensome Auto-Enrolment launch. As evidenced globally, this will have a huge impact on savers, and will completely change a developing benefits market.</p> <p> </p> <p><span class="TextRun SCXW65560032 BCX8" lang="EN-GB" xml:lang="EN-GB" data-contrast="auto"><span class="NormalTextRun SCXW65560032 BCX8" data-ccp-parastyle="Body copy" data-ccp-parastyle-defn="{"ObjectId":"efd3e9ea-ca4c-4f48-8da6-62aecf522453|144","ClassId":1073872969,"Properties":[268442635,"21",335559740,"192",201341983,"0",201342446,"1",201342447,"5",201342448,"1",201342449,"1",469777841,"TT Hoves Light",469777842,"",469777843,"TT Hoves Light",469777844,"TT Hoves Light",201341986,"1",469769226,"TT Hoves Light",469775450,"Body copy",201340122,"2",134234082,"true",134233614,"true",469778129,"Bodycopy",335572020,"2",335559685,"3119",335559739,"100",469778324,"Normal"]}">Please</span> <span class="NormalTextRun SCXW65560032 BCX8" data-ccp-parastyle="Body copy">get in touch with</span> </span><a class="Hyperlink SCXW65560032 BCX8" href="mailto:Edward.Andrew@isio.com" target="_blank" rel="noreferrer noopener"><span class="TextRun Underlined SCXW65560032 BCX8" lang="EN-GB" xml:lang="EN-GB" data-contrast="none"><span class="NormalTextRun SCXW65560032 BCX8" data-ccp-charstyle="Hyperlink">Edward.Andrew@isio.com</span></span></a><span class="TextRun SCXW65560032 BCX8" lang="EN-GB" xml:lang="EN-GB" data-contrast="auto"> <span class="NormalTextRun SCXW65560032 BCX8" data-ccp-parastyle="Body copy">to discuss </span><span class="NormalTextRun SCXW65560032 BCX8" data-ccp-parastyle="Body copy">what we are seeing in the market, the options that employers have available to them</span><span class="NormalTextRun SCXW65560032 BCX8" data-ccp-parastyle="Body copy"> and</span><span class="NormalTextRun SCXW65560032 BCX8" data-ccp-parastyle="Body copy"> the potential impacts and how best to prepare.</span></span><span class="EOP SCXW65560032 BCX8" data-ccp-props="{"201341983":0,"335559685":0,"335559739":100,"335559740":192}"> </span></p> <a class="my-5 btn-primary btn-white " href=" mailto:edward.andrew@isio.com">Get in touch</a> </div> <p class="text-white text-xl font-medium mb-6"></p> <p class="text-white text-xl font-medium mb-6 mt-6"></p> <div class="md:flex"> </div> </div> </div> <div x-show="activeTab === 6" class="grid md:grid-cols-2 pt-12 gap-x-24"> <!-- Content for the tab goes here --> <div class="md:col-span-2"> <div class="text-white text-xl font-light"> <p> </p> <ul> <li>The Government announces its Autumn Budget on 30th October, amid speculation that pensions tax could be an area the Chancellor targets. If you’d like to hear more on this topic, <span style="text-decoration: underline"><strong><a href="https://isio.zoom.us/webinar/register/2217290024120/WN_NEq247pQSFKAplxvfk-THA" target="_blank" rel="noopener">sign up for our webinar</a></strong></span> on Budget day, where we’ll be sharing our reactions to the Budget</li> </ul> <p> </p> <ul> <li>We’re hosting our “Accounting for Pensions” webinar in the coming months, covering what Sponsors should be thinking about from an accounting perspective at the 2024 year-end. If you’d like to receive an invite, please join our <strong><span style="text-decoration: underline"><a href="https://share-eu1.hsforms.com/1Dlz5t4JiSEmTgQ-fFhEcoQg43y5?__hstc=150177513.008a8a25881ca8c872ab03c0418d8d69.1728462293003.1729155685255.1729160424604.26&__hssc=150177513.1.1729160424604&__hsfp=1615757629">mailing list</a></span></strong></li> </ul> <p> </p> <ul> <li>On Tuesday 19th November at 10.30am – 12:15pm, we will be hosting Isio’s annual Fiduciary Management Conference live from a London studio. Our expert speakers will be exploring how fiduciary managers have been rebuilding their propositions for this new era and will shine a light on the trends in the fiduciary landscape highlighting areas to be cautious of when using a delegated model. You can register for the conference <strong><span style="text-decoration: underline"><a href="https://isio.zoom.us/webinar/register/7617291606969/WN_7BymM4ofRdmL6y0E4Z05aw">here</a></span></strong>.</li> </ul> <a class="my-5 btn-primary btn-white " href="https://www.isio.com/subscribe-to-iq/">Subscribe to IQ</a> </div> </div> </div> </div> </div> </section> <!-- Mobile version of block --> <section class="py-6 md:hidden bg-brandGreen-100"> <dl class="container divide-y divide-white"> <div class="py-5 border-1"> <dt> <!-- Expand/collapse question button --> <button type="button" class="flex w-full items-start justify-between text-left text-white" aria-controls="faq-0" aria-expanded="false"> <span class="text-2xl">Financial conditions update</span> <span class="md:ml-6 flex h-7 items-center"> <svg class="h-6 w-6 inline-block relative md:left-5 md:-top-2" xmlns="http://www.w3.org/2000/svg" width="24" height="13" viewBox="0 0 24 13" fill="none"> <path d="M1.5 1.5L12 12L22.5 1.5" stroke="white" stroke-width="2" stroke-linejoin="round" /> </svg> <svg class="rotate-180 hidden h-6 w-6 inline-block relative md:left-5 md:-top-2" xmlns="http://www.w3.org/2000/svg" width="24" height="13" viewBox="0 0 24 13" fill="none"> <path d="M1.5 1.5L12 12L22.5 1.5" stroke="white" stroke-width="2" stroke-linejoin="round" /> </svg> </span> </button> </dt> <dd class="mt-5 pr-12" id="faq-0" style="display: none;"> <div class=""> <div class="mb-10"> <p class="text-2xl font-light text-white"><strong>Change since 30 June 2024<strong /></p> </div> <div class="text-white text-xl font-light"> <p><img fetchpriority="high" decoding="async" class="aligncenter wp-image-21587 size-full" src="https://www.isio.com/app/uploads/2024/10/IQ-Isio-Quarterly-market-update-2.gif" alt="" width="600" height="250" /></p> <p> </p> <p><strong>Commentary</strong></p> <ul> <li>It’s been a quiet quarter, and we don’t expect scheme’s funding positions to have changed materially either way in most cases.</li> <li>Gilt yields fell by c. 10-15 basis points over the quarter, with slightly lower falls of 5 – 10 basis points in long-term inflation expectations. As both these movements have been in the same direction they will largely offset each other for funding valuations.</li> <li>Equity markets were up slightly, with UK equity markets returning c1% over the risk-free rate.</li> <li>Credit spreads increased slightly (less than 5 basis points) over the quarter – and thus accounting positions may have improved slightly for most schemes.</li> </ul> <a class="my-5 btn-primary btn-white " href="https://www.isio.com/app/uploads/2024/10/Accounting-in-Pensions-Post-30-Sep-2024.pdf">Download a full report</a> </div> </div> </dd> </div> <div class="py-5 border-1"> <dt> <!-- Expand/collapse question button --> <button type="button" class="flex w-full items-start justify-between text-left text-white" aria-controls="faq-1" aria-expanded="false"> <span class="text-2xl">New Funding Code</span> <span class="md:ml-6 flex h-7 items-center"> <svg class="h-6 w-6 inline-block relative md:left-5 md:-top-2" xmlns="http://www.w3.org/2000/svg" width="24" height="13" viewBox="0 0 24 13" fill="none"> <path d="M1.5 1.5L12 12L22.5 1.5" stroke="white" stroke-width="2" stroke-linejoin="round" /> </svg> <svg class="rotate-180 hidden h-6 w-6 inline-block relative md:left-5 md:-top-2" xmlns="http://www.w3.org/2000/svg" width="24" height="13" viewBox="0 0 24 13" fill="none"> <path d="M1.5 1.5L12 12L22.5 1.5" stroke="white" stroke-width="2" stroke-linejoin="round" /> </svg> </span> </button> </dt> <dd class="mt-5 pr-12" id="faq-1" style="display: none;"> <div class=""> <div class="mb-10"> <p class="text-2xl font-light text-white"><strong>New DB funding regime in force<strong /></p> </div> <div class="text-white text-xl font-light"> <p><strong>Background</strong></p> <p>After many years of waiting, the new funding code has finally come into force and will apply to valuations with an effective date on or after 22 September 2024. The new code builds on the existing DB funding regime by requiring trustees and sponsors:</p> <p> </p> <ul> <li>to have a <strong>long-term plan</strong> to be at least fully funded on a basis that reflects a<strong> low-dependency</strong> investment strategy by the time their scheme is <strong>significantly mature</strong>; and</li> <li>to make sure their technical provisions reflect the journey plan to get there.</li> </ul> <p> </p> <p>All of this will need to be documented in a new <strong>Statement of Strategy</strong>.</p> <p> </p> <p><strong>Isio’s view</strong></p> <p>With generally improved funding levels across UK DB schemes, the financial impact of the new funding regime may be less than first thought. The first valuations under the new funding code will however still require significant additional work in collaboration with the trustees. Those schemes with late 2024 and early 2025 valuation dates will end up acting as guinea pigs for the rest of the industry as it gets to grips with how the new requirements are applied in practice for the first time.</p> <p> </p> <p> </p> <p><strong>Why it matters</strong></p> <p>Sponsors should not rely solely on their trustees to understand and reflect the new funding regime at the next valuation. Sponsors should be:</p> <p> </p> <ul> <li>Thinking about what long-term objective to target, and the implications on the technical provisions.</li> <li>Confirming expected time to “significant maturity”, to understand how long you have before the long-term objective should be reached.</li> <li>Start thinking about employer covenant (now a legally defined term under the new regime) with future assessments to focus on company cashflows and “prospects”</li> <li>Consider whether to target the prescriptive “Fast Track” approach to minimise scrutiny from the Pensions Regulator, or the more flexible “Bespoke” approach.</li> </ul> <p> </p> <a class="my-5 btn-primary btn-white " href="https://www.isio.com/insights/decoding-the-new-db-pensions-funding-regime/">Read more</a> </div> </div> </dd> </div> <div class="py-5 border-1"> <dt> <!-- Expand/collapse question button --> <button type="button" class="flex w-full items-start justify-between text-left text-white" aria-controls="faq-2" aria-expanded="false"> <span class="text-2xl">Virgin Media</span> <span class="md:ml-6 flex h-7 items-center"> <svg class="h-6 w-6 inline-block relative md:left-5 md:-top-2" xmlns="http://www.w3.org/2000/svg" width="24" height="13" viewBox="0 0 24 13" fill="none"> <path d="M1.5 1.5L12 12L22.5 1.5" stroke="white" stroke-width="2" stroke-linejoin="round" /> </svg> <svg class="rotate-180 hidden h-6 w-6 inline-block relative md:left-5 md:-top-2" xmlns="http://www.w3.org/2000/svg" width="24" height="13" viewBox="0 0 24 13" fill="none"> <path d="M1.5 1.5L12 12L22.5 1.5" stroke="white" stroke-width="2" stroke-linejoin="round" /> </svg> </span> </button> </dt> <dd class="mt-5 pr-12" id="faq-2" style="display: none;"> <div class=""> <div class="mb-10"> <p class="text-2xl font-light text-white"><strong>Virgin Media case<strong /> </p> </div> <div class="text-white text-xl font-light"> <p><strong>Background</strong></p> <p>In June 2023 the High Court judged that historic amendments made to the Virgin Media scheme between 1997 and 2016 were invalid unless Section 37 actuarial certification was obtained (and could be evidenced) – a ruling which was upheld by the Court of Appeal in July 2024.</p> <p> </p> <p>This case has wider applicability to DB pension schemes which were contracted out between 1997 to 2016 – who could also find that historic amendments are invalid if they don’t have the appropriate documentation.</p> <p> </p> <p><strong>Isio’s view</strong></p> <p>This potentially causes a huge headache for sponsors and trustees alike. The nightmare scenario would be having to unwind historic amendments simply due to gaps in records, rather than because these changes didn’t meet the requirements for certification at the time.</p> <p> </p> <p><span class="TextRun SCXW43260072 BCX8" lang="EN-GB" xml:lang="EN-GB" data-contrast="auto"><span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy" data-ccp-parastyle-defn="{"ObjectId":"efd3e9ea-ca4c-4f48-8da6-62aecf522453|144","ClassId":1073872969,"Properties":[268442635,"21",335559740,"192",201341983,"0",201342446,"1",201342447,"5",201342448,"1",201342449,"1",469777841,"TT Hoves Light",469777842,"",469777843,"TT Hoves Light",469777844,"TT Hoves Light",201341986,"1",469769226,"TT Hoves Light",469775450,"Body copy",201340122,"2",134234082,"true",134233614,"true",469778129,"Bodycopy",335572020,"2",335559685,"3119",335559739,"100",469778324,"Normal"]}">Given </span><span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy">th</span><span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy">e</span> <span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy">potential impact</span><span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy"> based </span><span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy">on a technicality, </span><span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy">v</span><span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy">arious industry </span><span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy">bodies</span> <span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy">are actively lobbying DWP to intervene on this issue</span><span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy"> and</span><span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy"> retrospective</span><span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy">ly</span> <span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy">validat</span><span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy">e</span> <span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy">historic amendments which met all the right conditions for actuarial certification at the time, but where </span><span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy">evidence of this cannot be found</span><span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy">.</span><span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy"> However, it </span><span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy">remains</span><span class="NormalTextRun SCXW43260072 BCX8" data-ccp-parastyle="Body copy"> unclear whether DWP will step in.</span></span><span class="EOP SCXW43260072 BCX8" data-ccp-props="{"201341983":0,"335559685":0,"335559739":100,"335559740":192}"> </span></p> <p> </p> <p><strong>Why it matters</strong></p> <p><span data-contrast="auto">For DB schemes going through an insurance or M&A process, there is a more pressing need to understand any potential risks to the underlying obligations.</span></p> <p> </p> <p><span data-contrast="auto">More broadly, auditors are already expecting further investigation into this issue to have commenced, ahead of their next reporting periods – doing nothing is not an option.</span></p> <p> </p> <p><span data-contrast="auto">Finally, sponsors should try to understand any potential changes in benefit obligations – particularly if significant – as these could have funding implications as well as influence strategic pensions decisions.</span><span data-ccp-props="{"201341983":0,"335559685":0,"335559739":100,"335559740":192}"> </span></p> <p> </p> <p><span class="TextRun Highlight SCXW266577915 BCX8" lang="EN-GB" xml:lang="EN-GB" data-contrast="auto"><span class="NormalTextRun SCXW266577915 BCX8">We will be running </span><span class="NormalTextRun SCXW266577915 BCX8">a</span><span class="NormalTextRun SCXW266577915 BCX8"> webinar</span><span class="NormalTextRun SCXW266577915 BCX8"> in the coming months, </span><span class="NormalTextRun SCXW266577915 BCX8">on the implications of the Virgin Media ruling</span><span class="NormalTextRun SCXW266577915 BCX8">. If </span><span class="NormalTextRun SCXW266577915 BCX8">you’d</span><span class="NormalTextRun SCXW266577915 BCX8"> like to receive an invite, please </span></span><span class="TextRun Highlight Underlined SCXW266577915 BCX8" lang="EN-GB" xml:lang="EN-GB" data-contrast="auto"><span class="NormalTextRun SCXW266577915 BCX8">join our <a href="https://share-eu1.hsforms.com/1Dlz5t4JiSEmTgQ-fFhEcoQg43y5?__hstc=150177513.008a8a25881ca8c872ab03c0418d8d69.1728462293003.1729155685255.1729160424604.26&__hssc=150177513.1.1729160424604&__hsfp=1615757629">mailing list</a>.</span></span></p> <p> </p> <a class="my-5 btn-primary btn-white " href="https://share-eu1.hsforms.com/1Dlz5t4JiSEmTgQ-fFhEcoQg43y5?__hstc=150177513.008a8a25881ca8c872ab03c0418d8d69.1728462293003.1729155685255.1729160424604.26&__hssc=150177513.1.1729160424604&__hsfp=1615757629">Join our mailing list</a> </div> </div> </dd> </div> <div class="py-5 border-1"> <dt> <!-- Expand/collapse question button --> <button type="button" class="flex w-full items-start justify-between text-left text-white" aria-controls="faq-3" aria-expanded="false"> <span class="text-2xl">Run-on survey of professional trustees</span> <span class="md:ml-6 flex h-7 items-center"> <svg class="h-6 w-6 inline-block relative md:left-5 md:-top-2" xmlns="http://www.w3.org/2000/svg" width="24" height="13" viewBox="0 0 24 13" fill="none"> <path d="M1.5 1.5L12 12L22.5 1.5" stroke="white" stroke-width="2" stroke-linejoin="round" /> </svg> <svg class="rotate-180 hidden h-6 w-6 inline-block relative md:left-5 md:-top-2" xmlns="http://www.w3.org/2000/svg" width="24" height="13" viewBox="0 0 24 13" fill="none"> <path d="M1.5 1.5L12 12L22.5 1.5" stroke="white" stroke-width="2" stroke-linejoin="round" /> </svg> </span> </button> </dt> <dd class="mt-5 pr-12" id="faq-3" style="display: none;"> <div class=""> <div class="mb-10"> <p class="text-2xl font-light text-white"><strong>Scheme run on survey of professional trustees<strong /></p> </div> <div class="text-white text-xl font-light"> <p><strong>Background</strong></p> <p>With UK DB schemes better funded than they have been for decades, employers and trustees are considering whether to take the opportunity to move to insurance at the earliest opportunity or seek to benefit from surpluses as they emerge. Against this backdrop, we surveyed 83 professional trustees responsible for over £350bn of DB assets to get their views on whether to run on and, for those schemes that do, how to implement this.</p> <p> </p> <p><strong>Isio’s view</strong></p> <p>Over two-thirds of professional trustees believe that the minimum member share of surplus to justify running on is 40% or less. This reflects the views expressed at our recent event for large sponsors that upside should be weighted towards employers who are responsible for funding 100% of any deficits that emerge.</p> <p> </p> <p><span class="TextRun SCXW9092995 BCX8" lang="EN-GB" xml:lang="EN-GB" data-contrast="auto"><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy" data-ccp-parastyle-defn="{"ObjectId":"efd3e9ea-ca4c-4f48-8da6-62aecf522453|144","ClassId":1073872969,"Properties":[268442635,"21",335559740,"192",201341983,"0",201342446,"1",201342447,"5",201342448,"1",201342449,"1",469777841,"TT Hoves Light",469777842,"",469777843,"TT Hoves Light",469777844,"TT Hoves Light",201341986,"1",469769226,"TT Hoves Light",469775450,"Body copy",201340122,"2",134234082,"true",134233614,"true",469778129,"Bodycopy",335572020,"2",335559685,"3119",335559739,"100",469778324,"Normal"]}">Employers </span><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy">looking</span><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy"> to run </span><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy">their schemes</span><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy"> on can be encouraged that trustees are keen to work collaboratively with them</span><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy">.</span> <span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy">T</span><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy">heir biggest concern </span><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy">is likely to </span><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy">be </span><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy">protection on</span><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy"> insolvency which can </span><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy">be </span><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy">improve</span><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy">d</span><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy"> if necessary through </span><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy">contingent </span><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy">arrangements like</span><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy"> escrow</span><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy">s or</span><span class="NormalTextRun SCXW9092995 BCX8" data-ccp-parastyle="Body copy"> parent guarantees.</span></span><span class="EOP SCXW9092995 BCX8" data-ccp-props="{"201341983":0,"335559685":0,"335559739":100,"335559740":192}"> </span></p> <p> </p> <p><strong>Why it matters</strong></p> <p><span data-contrast="auto">Deciding whether to insure at the earliest opportunity, to run on over the longer term, or something in-between, will be the most financially important decision that most trustees and employers ever agree for their schemes. </span><span data-ccp-props="{"201341983":0,"335559685":0,"335559739":100,"335559740":192}"> </span></p> <p><span data-contrast="auto">The views of the sponsor are crucial – indeed the employers view scored as the most important factor for professional trustees in deciding whether to run on beyond full buy-out funding. However, trustees typically hold much of the power in agreeing the “endgame”, so sponsors need to understand trustee perspectives going into these discussions. </span><span data-ccp-props="{"201341983":0,"335559685":0,"335559739":100,"335559740":192}"> </span></p> <p> </p> <p> </p> <a class="my-5 btn-primary btn-white " href="https://www.isio.com/app/uploads/2024/08/001_Scheme-run-on-%E2%80%93-survey-of-professional-trustees.pdf">View the survey</a> </div> </div> </dd> </div> <div class="py-5 border-1"> <dt> <!-- Expand/collapse question button --> <button type="button" class="flex w-full items-start justify-between text-left text-white" aria-controls="faq-4" aria-expanded="false"> <span class="text-2xl">Out-of-model investment risks</span> <span class="md:ml-6 flex h-7 items-center"> <svg class="h-6 w-6 inline-block relative md:left-5 md:-top-2" xmlns="http://www.w3.org/2000/svg" width="24" height="13" viewBox="0 0 24 13" fill="none"> <path d="M1.5 1.5L12 12L22.5 1.5" stroke="white" stroke-width="2" stroke-linejoin="round" /> </svg> <svg class="rotate-180 hidden h-6 w-6 inline-block relative md:left-5 md:-top-2" xmlns="http://www.w3.org/2000/svg" width="24" height="13" viewBox="0 0 24 13" fill="none"> <path d="M1.5 1.5L12 12L22.5 1.5" stroke="white" stroke-width="2" stroke-linejoin="round" /> </svg> </span> </button> </dt> <dd class="mt-5 pr-12" id="faq-4" style="display: none;"> <div class=""> <div class="mb-10"> <p class="text-2xl font-light text-white"><strong>Managing tail risks<strong /></p> </div> <div class="text-white text-xl font-light"> <p><strong>Background</strong></p> <p>Many pension schemes are now well funded and running low risk strategies, and modelled risks metrics like ‘Value-at-Risk’ give the impression that not a lot can go wrong. However, we know from experience that “out of model” risks can and do happen. Over summer, for example, there was significant volatility in Japanese equities – an event which had only a 0.00000000000000000000003% probability of occurrence, and was in the top 5 market movements of all time. Whilst most schemes have limited exposure to this market, it does highlight the potential remaining risk.</p> <p></p> <p><strong>Isio’s view </strong></p> <p>Sponsors and trustees should consider the exposure of their schemes to out of model risks. This review should identify the “pinch points” and understand their impact if the unexpected occurs. Examples of such pinch points include defaults, liquidity, deflation, longevity and IT outages. Where pinch points are identified a plan can be formulated – either to remove the exposure or to improve governance in case the event happens.</p> <p> </p> <p><strong>Why it matters</strong></p> <p><span data-contrast="auto">If a scheme with 1% asset outperformance over its liabilities has a 10% hit to funding, it would take over 10 years to recover without re-risking or additional cash contributions. </span><span data-contrast="auto">Understanding these types of risks means that sponsors and trustees can be proactive if they occur, giving them the greatest chance of mitigating the impact. The LDI crisis in 2022 was a great example of this, where those with clear pre-agreed frameworks generally fared better.</span><span data-ccp-props="{"201341983":0,"335559685":0,"335559739":100,"335559740":192}"> </span></p> <p> </p> <p><span class="TextRun SCXW229150392 BCX8" lang="EN-GB" xml:lang="EN-GB" data-contrast="auto"><span class="NormalTextRun SCXW229150392 BCX8" data-ccp-charstyle="ui-provider" data-ccp-charstyle-defn="{"ObjectId":"efd3e9ea-ca4c-4f48-8da6-62aecf522453|198","ClassId":1073872969,"Properties":[201342446,"1",201342447,"5",201342448,"1",201342449,"1",469777841,"TT Hoves Light",469777842,"",469777843,"TT Hoves Light",469777844,"TT Hoves Light",201341986,"1",469769226,"TT Hoves Light",469775450,"ui-provider",201340122,"1",134233614,"true",469778129,"ui-provider",335572020,"1",469778324,"Default Paragraph Font"]}">Please </span><span class="NormalTextRun SCXW229150392 BCX8" data-ccp-charstyle="ui-provider">get in touch with</span> </span><a class="Hyperlink SCXW229150392 BCX8" href="mailto:Edward.Andrew@isio.com" target="_blank" rel="noreferrer noopener"><span class="TextRun Underlined SCXW229150392 BCX8" lang="EN-GB" xml:lang="EN-GB" data-contrast="none"><span class="NormalTextRun SCXW229150392 BCX8" data-ccp-charstyle="Hyperlink">Barry.Jones@isio.com</span></span></a><span class="TextRun SCXW229150392 BCX8" lang="EN-GB" xml:lang="EN-GB" data-contrast="auto"><span class="NormalTextRun SCXW229150392 BCX8" data-ccp-charstyle="ui-provider"> to discuss how we could help you to </span><span class="NormalTextRun SCXW229150392 BCX8" data-ccp-charstyle="ui-provider">identify</span><span class="NormalTextRun SCXW229150392 BCX8" data-ccp-charstyle="ui-provider"> and manage remaining risks in your pension scheme</span></span><span class="EOP SCXW229150392 BCX8" data-ccp-props="{"201341983":0,"335559685":0,"335559739":100,"335559740":192}"> </span></p> <a class="my-5 btn-primary btn-white " href="https://www.isio.com/person/barry-jones/">Get in touch</a> </div> </div> </dd> </div> <div class="py-5 border-1"> <dt> <!-- Expand/collapse question button --> <button type="button" class="flex w-full items-start justify-between text-left text-white" aria-controls="faq-5" aria-expanded="false"> <span class="text-2xl">Automatic Enrolment in the Republic of Ireland </span> <span class="md:ml-6 flex h-7 items-center"> <svg class="h-6 w-6 inline-block relative md:left-5 md:-top-2" xmlns="http://www.w3.org/2000/svg" width="24" height="13" viewBox="0 0 24 13" fill="none"> <path d="M1.5 1.5L12 12L22.5 1.5" stroke="white" stroke-width="2" stroke-linejoin="round" /> </svg> <svg class="rotate-180 hidden h-6 w-6 inline-block relative md:left-5 md:-top-2" xmlns="http://www.w3.org/2000/svg" width="24" height="13" viewBox="0 0 24 13" fill="none"> <path d="M1.5 1.5L12 12L22.5 1.5" stroke="white" stroke-width="2" stroke-linejoin="round" /> </svg> </span> </button> </dt> <dd class="mt-5 pr-12" id="faq-5" style="display: none;"> <div class=""> <div class="mb-10"> <p class="text-2xl font-light text-white"><strong>Irish Auto-Enrolment launch delayed again!<strong /></p> </div> <div class="text-white text-xl font-light"> <p><strong>Background</strong></p> <p>Ireland is the only OECD country without an Auto-Enrolment (or similar) solution in place. The Government has been considering a solution for decades, and a 1 January 2025 introduction had been quoted. However, much remains to be done including a search for asset managers to provide the default investment strategies, comprehensive public education, and consultation with payroll departments on who the administrative burden will mostly fall. Auto-Enrolment is therefore now expected to come into effect on September 30th 2025.</p> <p> </p> <p><strong>Isio’s view</strong></p> <p>Auto-Enrolment is overwhelmingly welcomed, particularly given the success in the UK and globally. The 6% matching contributions in 10 years’ time (with a 33% government uplift) will bring contributions well above the UK’s current Auto-Enrolment minimums and more in line with what we believe is a reasonable level of contributions to support retirement. The delays are understandable, but more clarity should be provided on the remaining design areas so that employers can plan effectively.</p> <p> </p> <p><strong>Why it matters</strong><br /> Auto-enrolment is delayed, but it is coming! It will have a cost and administrative impact on all employers and employees in Ireland. Employers should consider their Irish pensions strategy now and make sure the pensions in place are compliant before Auto-Enrolment arrives. This will help to protect employees from potentially worse off benefit solutions, attract and retain the best staff, and get ahead of a potentially clunky and burdensome Auto-Enrolment launch. As evidenced globally, this will have a huge impact on savers, and will completely change a developing benefits market.</p> <p> </p> <p><span class="TextRun SCXW65560032 BCX8" lang="EN-GB" xml:lang="EN-GB" data-contrast="auto"><span class="NormalTextRun SCXW65560032 BCX8" data-ccp-parastyle="Body copy" data-ccp-parastyle-defn="{"ObjectId":"efd3e9ea-ca4c-4f48-8da6-62aecf522453|144","ClassId":1073872969,"Properties":[268442635,"21",335559740,"192",201341983,"0",201342446,"1",201342447,"5",201342448,"1",201342449,"1",469777841,"TT Hoves Light",469777842,"",469777843,"TT Hoves Light",469777844,"TT Hoves Light",201341986,"1",469769226,"TT Hoves Light",469775450,"Body copy",201340122,"2",134234082,"true",134233614,"true",469778129,"Bodycopy",335572020,"2",335559685,"3119",335559739,"100",469778324,"Normal"]}">Please</span> <span class="NormalTextRun SCXW65560032 BCX8" data-ccp-parastyle="Body copy">get in touch with</span> </span><a class="Hyperlink SCXW65560032 BCX8" href="mailto:Edward.Andrew@isio.com" target="_blank" rel="noreferrer noopener"><span class="TextRun Underlined SCXW65560032 BCX8" lang="EN-GB" xml:lang="EN-GB" data-contrast="none"><span class="NormalTextRun SCXW65560032 BCX8" data-ccp-charstyle="Hyperlink">Edward.Andrew@isio.com</span></span></a><span class="TextRun SCXW65560032 BCX8" lang="EN-GB" xml:lang="EN-GB" data-contrast="auto"> <span class="NormalTextRun SCXW65560032 BCX8" data-ccp-parastyle="Body copy">to discuss </span><span class="NormalTextRun SCXW65560032 BCX8" data-ccp-parastyle="Body copy">what we are seeing in the market, the options that employers have available to them</span><span class="NormalTextRun SCXW65560032 BCX8" data-ccp-parastyle="Body copy"> and</span><span class="NormalTextRun SCXW65560032 BCX8" data-ccp-parastyle="Body copy"> the potential impacts and how best to prepare.</span></span><span class="EOP SCXW65560032 BCX8" data-ccp-props="{"201341983":0,"335559685":0,"335559739":100,"335559740":192}"> </span></p> <a class="my-5 btn-primary btn-white " href=" mailto:edward.andrew@isio.com">Get in touch</a> </div> </div> </dd> </div> <div class="py-5 border-1"> <dt> <!-- Expand/collapse question button --> <button type="button" class="flex w-full items-start justify-between text-left text-white" aria-controls="faq-6" aria-expanded="false"> <span class="text-2xl">Looking forward to next quarter</span> <span class="md:ml-6 flex h-7 items-center"> <svg class="h-6 w-6 inline-block relative md:left-5 md:-top-2" xmlns="http://www.w3.org/2000/svg" width="24" height="13" viewBox="0 0 24 13" fill="none"> <path d="M1.5 1.5L12 12L22.5 1.5" stroke="white" stroke-width="2" stroke-linejoin="round" /> </svg> <svg class="rotate-180 hidden h-6 w-6 inline-block relative md:left-5 md:-top-2" xmlns="http://www.w3.org/2000/svg" width="24" height="13" viewBox="0 0 24 13" fill="none"> <path d="M1.5 1.5L12 12L22.5 1.5" stroke="white" stroke-width="2" stroke-linejoin="round" /> </svg> </span> </button> </dt> <dd class="mt-5 pr-12" id="faq-6" style="display: none;"> <div class="md:col-span-2"> <div class="text-white text-xl font-light"> <p> </p> <ul> <li>The Government announces its Autumn Budget on 30th October, amid speculation that pensions tax could be an area the Chancellor targets. If you’d like to hear more on this topic, <span style="text-decoration: underline"><strong><a href="https://isio.zoom.us/webinar/register/2217290024120/WN_NEq247pQSFKAplxvfk-THA" target="_blank" rel="noopener">sign up for our webinar</a></strong></span> on Budget day, where we’ll be sharing our reactions to the Budget</li> </ul> <p> </p> <ul> <li>We’re hosting our “Accounting for Pensions” webinar in the coming months, covering what Sponsors should be thinking about from an accounting perspective at the 2024 year-end. If you’d like to receive an invite, please join our <strong><span style="text-decoration: underline"><a href="https://share-eu1.hsforms.com/1Dlz5t4JiSEmTgQ-fFhEcoQg43y5?__hstc=150177513.008a8a25881ca8c872ab03c0418d8d69.1728462293003.1729155685255.1729160424604.26&__hssc=150177513.1.1729160424604&__hsfp=1615757629">mailing list</a></span></strong></li> </ul> <p> </p> <ul> <li>On Tuesday 19th November at 10.30am – 12:15pm, we will be hosting Isio’s annual Fiduciary Management Conference live from a London studio. Our expert speakers will be exploring how fiduciary managers have been rebuilding their propositions for this new era and will shine a light on the trends in the fiduciary landscape highlighting areas to be cautious of when using a delegated model. You can register for the conference <strong><span style="text-decoration: underline"><a href="https://isio.zoom.us/webinar/register/7617291606969/WN_7BymM4ofRdmL6y0E4Z05aw">here</a></span></strong>.</li> </ul> <a class="my-5 btn-primary btn-white " href="https://www.isio.com/subscribe-to-iq/">Subscribe to IQ</a> </div> </div> </dd> </div> </dl> </section> <section class="text-wrapper text-block medium-width "> <div class="container"> <div class="acf-innerblocks-container"> <h2 class="wp-block-heading" id="h-join-our-mailing-list">Join our mailing list</h2> <p><strong>Get the next issue of Isio Quarterly delivered straight to your inbox</strong></p> <div class="wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-1 wp-block-buttons-is-layout-flex"> <div class="wp-block-button has-custom-width wp-block-button__width-50"><a class="wp-block-button__link wp-element-button" href="https://share-eu1.hsforms.com/1Dlz5t4JiSEmTgQ-fFhEcoQg43y5" target="_blank" rel="noreferrer noopener">Subscribe now</a></div> </div> </div> </div> </section> <p>The post <a href="https://www.isio.com/news/isio-quarterly-october-2024/">Isio Quarterly October 2024</a> appeared first on <a href="https://www.isio.com">Isio</a>.</p> ]]></content:encoded> </item> <item> <title>Isio acquires K3 Advisory to bolster risk settlement capabilities</title> <link>https://www.isio.com/news/isio-acquires-k3-advisory-to-bolster-risk-settlement-capabilities/</link> <dc:creator><![CDATA[Gerry Wilson]]></dc:creator> <pubDate>Fri, 11 Oct 2024 08:00:13 +0000</pubDate> <guid isPermaLink="false">https://www.isio.com/?post_type=news&p=21440</guid> <description><![CDATA[<p>Britannia Pension Scheme is the first client to complete their transaction on i-FLO, a unique platform that enables investors to sell illiquid assets more efficiently. Britannia Pension Scheme used the platform to sell a c.£72 million investment in a private credit fund on the secondary market.</p> <p>The post <a href="https://www.isio.com/news/isio-acquires-k3-advisory-to-bolster-risk-settlement-capabilities/">Isio acquires K3 Advisory to bolster risk settlement capabilities</a> appeared first on <a href="https://www.isio.com">Isio</a>.</p> ]]></description> <content:encoded><![CDATA[ <section class="text-wrapper text-block medium-width "> <div class="container"> <div class="acf-innerblocks-container"> <h2 class="wp-block-heading has-medium-font-size" id="h-isio-acquires-k3-advisory-to-bolster-risk-settlement-capabilities"><strong>Isio acquires K3 Advisory to bolster risk settlement capabilities</strong></h2> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <p><strong>11 October 2024</strong>: Isio Group Limited (“Isio”), has today announced that it has signed an agreement to acquire K3 Advisory Limited (“K3”), the insurance and risk settlement specialist, subject to FCA regulatory approval.<br><br>The acquisition will enhance Isio’s risk settlement capabilities. Isio has a strong track record of providing end-to-end de-risking solutions to trustees and sponsors as well as providing consulting and operational support to insurers to help increase overall capacity in a busy risk settlement market.<br><br>K3, founded in 2018 by Adam Davis, is a market leader in broking transactions for small to medium schemes, and has completed almost a hundred transactions for thousands of members across nearly £2bn of assets in the past six years. The K3 team and brand will continue to operate as a distinct service offering within the Isio group, enhancing the risk settlement services on offer with a focus on overall value and efficiency.<br><br><strong>Steve Robinson, Partner at Isio, said: </strong><em>“This acquisition is an important part of our strategy to accelerate our growth in an area of the market where we see pension scheme demand increasing and where we already have a strong presence. Bringing the K3 team into the Isio Group will give us greater scale and depth of expertise, especially in small to medium sized transactions, where there is significant demand.<br><br>“The team is also a great cultural fit, sharing our challenger mentality, passion for innovation and fresh approach to problem-solving. K3 have built a great name and reputation in the buy-out market, and we look forward to supporting their continued growth, working alongside our existing team so clients benefit from our combined expertise and offering.”</em><br><br><strong>Adam Davis, Managing Director at K3, said:</strong> <em>“Over the last six years K3 has grown into one of the leading specialist providers in the bulk annuity market. As part of Isio we will now be able to offer an even wider range of services and skills to our clients, and our people will benefit from even more opportunities.<br><br>“The market is thriving as so many pension funds have found themselves in strong funding positions, seeking to secure the benefits of their members. We are looking forward to working with the team at Isio to do even more to support schemes in this critical phase, making endgame a real possibility.”</em></p> </div> </div> </section> <section class="py-24 lg:py-40 bg-brandGrey-100"> <div class="container md:grid md:grid-cols-2 mb-12 gap-6"> <div> <h2 class="font-semibold text-brandGreen text-5xl mb-6 lg:text-7xl ">Our Services</h2> </div> <div> <p class="text-brandGreen text-lg lg:pt-3.5"></p> </div> </div> <div class="container grid md:grid-cols-3 gap-6"> <div class="service_block transparent animate-me move-up step-1"> <a href="https://www.isio.com/what-we-do/pensions/settlement/" class="block bg-white h-full border-brandGreen hover:bg-brandGreen border-l-4 border-solid"> <p class="card-heading text-brandGreen text-2xl font-semibold pb-6 relative"><span class="w-[85%] block">Risk settlement</span> <svg class="absolute right-0 top-[7px]" width="28" height="23" viewBox="0 0 28 23" fill="none" xmlns="http://www.w3.org/2000/svg"> <path id="outside link" d="M26.6875 11.5L0.371704 11.5M26.6875 11.5L16.0973 1M26.6875 11.5L16.0973 22" stroke="#00BA8D" stroke-width="2" stroke-linejoin="round"/> </svg> </p> <p class="text-black text-lg font-light">Intelligent ways to manage your DB pension risks.</p> </a> </div> </div> </section> <section class="bg-grey-dient"> <div class="pt-20"> <div class="container grid md:grid-cols-2 md:gap-36"> <div> <h2 class="text-brandGreen-100 text-[2.875rem] font-semibold mb-12 leading-[4.25rem] md:text-[4.75rem]">Get in touch </h2> </div> <div> <p class="text-black text-[1.1875rem] font-normal mb-4"></p> </div> </div> </div> <div class="container hidden md:block pt-16 pb-10"> <div class="flex flex-row justify-start"> <div class="text-black transition-opacity duration-500"> <img decoding="async" class="h-72 w-72 mx-auto rounded-full max-w-none mb-5 object-cover" src="https://www.isio.com/app/uploads/2023/11/Remove-background-project-1.png" alt="Image"> <strong class="text-brandGreen-100 text-[1.175rem] font-medium">Steve Robinson</strong> <p class="text-black text-lg font-light mb-2">Partner</p> <p class="text-black mb-3"></p> <p class="text-black text-lg font-light"></p> <a class="text-brandGreen-100 block hover:underline text-lg font-light" href="mailto:steve.robinson@isio.com">steve.robinson@isio.com</a> <a href="https://www.isio.com/person/steve-robinson/" class="mx-auto btn-primary btn-outline mt-10">See full profile</a> </div> </div> </div> </div> <div class="hidden md:block container text-center pt-5 md:pb-40"> <a class=" mx-auto btn-primary " href="/our-people">Our people</a> </div> </section> <section class="md:hidden bg-grey-dient pt-10"> <div class="container quoteSwiper overflow-hidden"> <div class="flex justify-center w-full pt-16"> <div class=""> <div class="text-black transition-opacity duration-500 flex flex-col justify-center"> <img decoding="async" class="h-72 w-72 mx-auto rounded-full max-w-none mb-5 object-cover" src="https://www.isio.com/app/uploads/2023/11/Remove-background-project-1.png" alt="Image"> <strong class="text-brandGreen-100 text-[1.175rem] font-medium">Steve Robinson</strong> <p class="text-black text-lg font-light mb-2">Partner</p> <p class="text-black mb-3"></p> <p class="text-black text-lg font-light"></p> <a class="text-brandGreen-100 block hover:underline text-lg font-light" href="mailto:steve.robinson@isio.com">steve.robinson@isio.com</a> <a href="https://www.isio.com/person/steve-robinson/" class="mx-auto btn-primary btn-outline mt-10 items-center ">See full profile</a> </div> </div> </div> </div> <div class="md:hidden container text-center mt-20 mb-8"> <a class=" mx-auto btn-primary " href="/our-people">Our people</a> </div> </section> <p>The post <a href="https://www.isio.com/news/isio-acquires-k3-advisory-to-bolster-risk-settlement-capabilities/">Isio acquires K3 Advisory to bolster risk settlement capabilities</a> appeared first on <a href="https://www.isio.com">Isio</a>.</p> ]]></content:encoded> </item> <item> <title>Isio Fund Liquidity Options (i-FLO) welcomes Britannia Pension Scheme to their platform for selling illiquid assets</title> <link>https://www.isio.com/news/isio-fund-liquidity-options-welcomes-britannia-pension-scheme-to-their-platform/</link> <dc:creator><![CDATA[Imogen Pollard]]></dc:creator> <pubDate>Wed, 07 Aug 2024 08:35:13 +0000</pubDate> <guid isPermaLink="false">https://www.isio.com/?post_type=news&p=20716</guid> <description><![CDATA[<p>Britannia Pension Scheme is the first client to complete their transaction on i-FLO, a unique platform that enables investors to sell illiquid assets more efficiently. Britannia Pension Scheme used the platform to sell a c.£72 million investment in a private credit fund on the secondary market.</p> <p>The post <a href="https://www.isio.com/news/isio-fund-liquidity-options-welcomes-britannia-pension-scheme-to-their-platform/">Isio Fund Liquidity Options (i-FLO) welcomes Britannia Pension Scheme to their platform for selling illiquid assets</a> appeared first on <a href="https://www.isio.com">Isio</a>.</p> ]]></description> <content:encoded><![CDATA[ <section class="text-wrapper text-block medium-width "> <div class="container"> <div class="acf-innerblocks-container"> <h2 class="wp-block-heading has-medium-font-size" id="h-isio-fund-liquidity-options-i-flo-welcomes-britannia-pension-scheme-to-their-platform-for-selling-illiquid-assets"><strong>Isio Fund Liquidity Options (i-FLO) welcomes Britannia Pension Scheme to their platform for selling illiquid assets</strong></h2> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <p>Isio, one of the fastest-growing pensions and investment consultancies in the UK, has today announced that Britannia Pension Scheme has formally completed the sale of a private credit fund exposure using the <a href="https://www.isio.com/what-we-do/investment/i-flo/">Isio Fund Liquidity Options </a>(i-FLO) platform. Britannia Pension Scheme is the first client to complete their transaction on i-FLO, a unique platform that enables investors to sell illiquid assets more efficiently. Britannia Pension Scheme used the platform to sell a c.£72 million investment in a private credit fund on the secondary market.</p> <p>i-FLO was launched following significant demand from pension schemes to sell illiquid assets, combined with the challenges of doing so at competitive prices and fee levels, in a timely manner. Pension schemes relying on traditional routes to sell illiquid assets may find the process to be inefficient and expensive, particularly in nascent markets such as Private Credit and Infrastructure Equity. Isio’s i-FLO platform offers an efficient solution to this problem.</p> <p>Britannia Pension Scheme chose Isio following a thorough evaluation process, identifying i-FLO’s competitive pricing, efficient execution, and transparency as key factors. The platform’s significantly lower fees compared to traditional approaches of selling illiquid assets played an important role in the decision.</p> <p><strong>Ajith Nair, Head of Asset Class and Manager Research at Isio, commented: </strong><em>“It’s exciting to see our first deal formally complete and settled, and we thank Britannia Pension Scheme for their decision to select i-FLO. Our strategy of focussing on high-quality buyers to generate value for our clients has proven successful, with Britannia Pension Scheme achieving highly competitive pricing, along with significant fee savings versus the traditional route. The i-FLO platform pipeline remains busy, with several deals nearing completion. We look forward to welcoming other investors to the platform, enabling them to benefit from both the efficiency, attractive pricing, and reduced fees.”</em></p> <p><strong>John Hope, Chair of Britannia Pension Scheme’s Investment & Funding Committee, commented: </strong>“<em>We’re pleased to have used the i-FLO platform to sell an illiquid private credit LP interest. The innovative approach and competitive pricing gave us confidence that the i-FLO platform could effectively manage the sale of our illiquid asset. The streamlined process and clear communication provided by the Isio team have been invaluable and this stands the Scheme in good stead as the Trustee continues </em>to manage the Scheme’s assets effectively and deliver security for members’ benefits<em>”.</em></p> </div> </div> </section> <section class="how-we-can-help pt-28 pb-48"> <div class="container"> <div class="header"> <h2>Our Services</h2> </div> <div class="grid-cols-1 lg:grid-cols-3 gap-x-9 gap-y-7 items-center hidden lg:grid"> <div class="h-full" x-data="{ isOpen: true }"> <a href="https://www.isio.com/what-we-do/investment/i-flo/"> <div class="h-full animate-me transparent move-up step-0 service_block shadow-lg hover:cursor-pointer hover:bg-brandGreen bg-white lg:border-l-[3px] border-brandGreen" @mouseenter="isOpen = true"> <p class="card-heading text-brandGreen p-4 pb-5 text-2xl relative cursor-pointer w-full"> <span class="w-[85%] block">i-Flo</span> <svg class="absolute top-5 right-4 transform transition-transform 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move-up step-1 service_block "> <p class="card-heading"> <a href="https://www.isio.com/private-capital/"> <span class="w-[85%] block">Private Capital</span> </a> <svg x-on:click="isOpen = !isOpen" class="absolute top-5 right-4 transform transition-transform duration-300" width="24" height="23" viewBox="0 0 28 23" fill="none" xmlns="http://www.w3.org/2000/svg" > <path id="outside link" d="M26.6875 11.5L0.371704 11.5M26.6875 11.5L16.0973 1M26.6875 11.5L16.0973 22" stroke="#00BA8D" stroke-width="2" stroke-linejoin="round" /> </svg> </p> <div x-show="isOpen" x-transition:enter="transition-transform ease-in-out duration-300" x-transition:enter-start="transform opacity-0 -translate-y-4 origin-top" x-transition:enter-end="transform opacity-100 translate-y-0 origin-top" x-transition:leave="transition-transform ease-in-out duration-300" x-transition:leave-start="transform opacity-100 -translate-y-4 origin-top" x-transition:leave-end="transform opacity-0 translate-y-0 origin-top" class="hidden p-4 lg:block" > <a href="https://www.isio.com/private-capital/"> <p class="text-lg font-light">A different approach to managing your investments</p> </a </div> </div> </div> </div> </div> </section> <section class="bg-grey-dient"> <div class="pt-20"> <div class="container grid md:grid-cols-2 md:gap-36"> <div> <h2 class="text-brandGreen-100 text-[2.875rem] font-semibold mb-12 leading-[4.25rem] md:text-[4.75rem]">Get in touch </h2> </div> <div> <p class="text-black text-[1.1875rem] font-normal mb-4">i-FLO is currently focused on private credit and infrastructure equity. For private equity and real estate, i-FLO can help you find brokers best suited to services these markets. At Isio, we focus on a culture of problem solving and innovation – we do not settle for anything less than what is best for our clients.</p> </div> </div> </div> <div class="container hidden md:block pt-16 pb-10"> <div class="flex flex-row justify-start"> <div class="text-black transition-opacity duration-500"> <img decoding="async" class="h-72 w-72 mx-auto rounded-full max-w-none mb-5 object-cover" src="https://www.isio.com/app/uploads/2023/11/Ajith-Balan-Nair.png" alt="Image"> <strong class="text-brandGreen-100 text-[1.175rem] font-medium">Ajith Balan Nair</strong> <p class="text-black text-lg font-light mb-2">Head of Asset Class and Manager Research</p> <p class="text-black mb-3"></p> <p class="text-black text-lg font-light"></p> <a class="text-brandGreen-100 block hover:underline text-lg font-light" href="mailto:ajith.nair@isio.com">ajith.nair@isio.com</a> <a href="https://www.isio.com/person/ajith-nair/" class="mx-auto btn-primary btn-outline mt-10">See full profile</a> </div> </div> </div> </div> <div class="hidden md:block container text-center pt-5 md:pb-40"> <a class=" mx-auto btn-primary " href="/our-people">Our people</a> </div> </section> <section class="md:hidden bg-grey-dient pt-10"> <div class="container quoteSwiper overflow-hidden"> <div class="flex justify-center w-full pt-16"> <div class=""> <div class="text-black transition-opacity duration-500 flex flex-col justify-center"> <img decoding="async" class="h-72 w-72 mx-auto rounded-full max-w-none mb-5 object-cover" src="https://www.isio.com/app/uploads/2023/11/Ajith-Balan-Nair.png" alt="Image"> <strong class="text-brandGreen-100 text-[1.175rem] font-medium">Ajith Balan Nair</strong> <p class="text-black text-lg font-light mb-2">Head of Asset Class and Manager Research</p> <p class="text-black mb-3"></p> <p class="text-black text-lg font-light"></p> <a class="text-brandGreen-100 block hover:underline text-lg font-light" href="mailto:ajith.nair@isio.com">ajith.nair@isio.com</a> <a href="https://www.isio.com/person/ajith-nair/" class="mx-auto btn-primary btn-outline mt-10 items-center ">See full profile</a> </div> </div> </div> </div> <div class="md:hidden container text-center mt-20 mb-8"> <a class=" mx-auto btn-primary " href="/our-people">Our people</a> </div> </section> <p>The post <a href="https://www.isio.com/news/isio-fund-liquidity-options-welcomes-britannia-pension-scheme-to-their-platform/">Isio Fund Liquidity Options (i-FLO) welcomes Britannia Pension Scheme to their platform for selling illiquid assets</a> appeared first on <a href="https://www.isio.com">Isio</a>.</p> ]]></content:encoded> </item> <item> <title>LGPS funding hits new high with £45bn surplus – Improvements mean more flexibility to support the UK growth agenda</title> <link>https://www.isio.com/news/lgps-funding-hits-new-high-with-45bn-surplus-improvements-mean-more-flexibility-to-support-the-uk-growth-agenda/</link> <dc:creator><![CDATA[laila cattle]]></dc:creator> <pubDate>Tue, 30 Jul 2024 11:35:26 +0000</pubDate> <guid isPermaLink="false">https://www.isio.com/?post_type=news&p=20595</guid> <description><![CDATA[<p>The post <a href="https://www.isio.com/news/lgps-funding-hits-new-high-with-45bn-surplus-improvements-mean-more-flexibility-to-support-the-uk-growth-agenda/">LGPS funding hits new high with £45bn surplus – Improvements mean more flexibility to support the UK growth agenda</a> appeared first on <a href="https://www.isio.com">Isio</a>.</p> ]]></description> <content:encoded><![CDATA[ <section class="text-wrapper text-block medium-width "> <div class="container"> <div class="acf-innerblocks-container"> <ul class="wp-block-list"> <li><em>Isio’s Low-Risk Funding Index reveals an increase from 110% to 112% over the period 31 May 2024 to 30 June 2024 – </em>a new record high surplus of £45bn, on a low-risk basis.</li> <li><em>The latest funding high come as asset values continue to improve and inflation levels fall</em>.</li> <li><em>With the new government focussed on how pension assets can support UK economic growth this surplus presents a possible opportunity for LGPS assets to be used directly rather than indirectly through their investment in the UK.</em></li> <li><em>Following this release, Isio’s Low-Risk Funding Index will take a “summer break” and resume in October based on 30 September market conditions.</em></li> </ul> <div style="height:65px" aria-hidden="true" class="wp-block-spacer"></div> <p><strong>30 July 2024: </strong>The latest release of Isio’s Low-Risk Funding Index reveals the aggregate funding level for the 87 funds participating in the Local Government Pension Scheme (LGPS) in England and Wales has improved from 110% at 31 May 2024 to 112% at 30 June 2024. <br><br>The improvement is primarily due to increases in asset values (mainly equities), as well as small reductions to future inflation expectations. Of the 87 participating funds, 69 have funding levels of 100% or higher, with levels ranging from 71% to 169% funded. <br><br>At the previous actuarial valuation date, 31 March 2022, the aggregate low-risk funding position was 67% and none of the 87 funds had a funding level of 100% or higher on a low-risk basis. With only eight months to go until the 31 March 2025 actuarial valuation, these results provide further evidence that ongoing funding levels for LGPS funds and their participating employers are expected to be higher than at 31 March 2022, meaning that surpluses will have increased further.</p> <p>Equity markets continue to perform well and gilt yields remain at unexpectedly high levels, demonstrating the need for funds to be flexible in their approaches to setting funding and investment strategies. Surplus funds can be used to offer contribution reductions and de-risked investment strategies can be used to ‘lock-in’ to current market conditions.</p> <p>As the new UK Government sets to action, public and private sector pension funds have been subject to heightened attention as plans to boost UK investment are put in place. For the LGPS, of interest is the potential consolidation of the 87 individual funds to generate efficiencies and further pooling of assets to enable investment in a wider range of UK assets. Isio believes there are other options available and LGPS assets could be deployed more directly to support the UK economy.</p> <p><strong>Steve Simkins, Partner and public services leader at Isio, says:</strong> “The LGPS is a hot topic at the moment, as the UK Government sets out its plans to boost UK investment. With LGPS assets across England and Wales currently estimated to be in excess of £400bn, the attractiveness of the LGPS to the new Chancellor is obvious.</p> <p>“So far we have heard of plans to increase pooling to enable further investment in a wider range of UK assets, whilst at the same time reducing the £2bn of investment expenses. But there is a natural tension here – how can investment expenses be reduced whilst there is an expectation to invest in more complicated and risky assets?</p> <p>“Instead of focussing on the assets in isolation, more attention could be given to the surplus within the LGPS and how this can be used more directly to influence the UK economy.</p> <p>“For local authorities, surplus could be used to reduce current contributions and support essential services provided to local communities. A very small reduction in assets will make a very big short-term difference for local authorities. This could create the best long-term returns for the local government.</p> <p>“For other employers, such as housing associations and universities, surplus could be to enable further investment in housing and skills, key aspects of the new government policy agenda.</p> <p>“The LGPS is currently so unexpectedly well-funded that there are wider opportunities to utilise the assets whilst maintaining benefits security and long-term contribution stability. Give the size of the assets involved we would encourage a broad and joined-up debate.”</p> </div> </div> </section> <div class="get-in-touch md:h-[250px] bg-no-repeat bg-bottom xl:bg-left-bottom bg-brandGreen-light py-14 md:py-0"> <div class="container text-white flex flex-col md:flex-row items-center space-between h-full"> <div class="flex flex-col xl:flex-row items-center md:items-start xl:items-center"> <h2 class="text-left text-5xl xl:basis-[400px] mb-8 xl:mb-0">Get in touch</h2> <p class="text-2xl px-5 md:px-0 xl:basis-[320px] mb-6 md:mb-0">Talk to us today to see how our bolder thinking can get you better results.</p> </div> <div class="flex flex-col xl:flex-row items-center"> <a href="tel: +44 (20) 7123 6000" class="xl:w-[280px] font-semibold text-[26px] whitespace-nowrap">+44 (20) 7123 6000</a> </div> </div> </div> <p>The post <a href="https://www.isio.com/news/lgps-funding-hits-new-high-with-45bn-surplus-improvements-mean-more-flexibility-to-support-the-uk-growth-agenda/">LGPS funding hits new high with £45bn surplus – Improvements mean more flexibility to support the UK growth agenda</a> appeared first on <a href="https://www.isio.com">Isio</a>.</p> ]]></content:encoded> </item> <item> <title>Isio Quarterly July 2024</title> <link>https://www.isio.com/news/isio-quarterly-july-2024/</link> <dc:creator><![CDATA[Daniel Owen]]></dc:creator> <pubDate>Tue, 16 Jul 2024 07:40:51 +0000</pubDate> <guid isPermaLink="false">https://www.isio.com/?post_type=news&p=19573</guid> <description><![CDATA[<p>Isio’s quarterly pensions update for sponsors, summarising key events from the quarter and looking ahead to what’s coming up.</p> <p>The post <a href="https://www.isio.com/news/isio-quarterly-july-2024/">Isio Quarterly July 2024</a> appeared first on <a href="https://www.isio.com">Isio</a>.</p> ]]></description> <content:encoded><![CDATA[ <section x-data="{ activeTab: 0 }"> <div class="tab_block relative bg-brandGrey-100 pt-0"> <div class="md:container lg:pt-36 relative z-10"> <div class="p-5 md:p-0 "> <h2 class="text-5xl lg:text-7xl text-brandGreen-100 mb-[25px] ">Welcome to IQ</h2> <p class="mb-[65px] text-xl md:w-1/2" text-brandGrey-100>Welcome to Isio’s latest quarterly pensions update for sponsors, summarising key events from the quarter and looking ahead to what’s coming up.</p> </div> <div class="hidden md:block border-b-[6px] border-brandGreen"> <nav class="isolate md:flex w-full" aria-label="Tabs"> <a @click="activeTab = 0" :class="{ 'text-white bg-brandGreen-100': activeTab === 0, 'text-brandGreen-100 bg-brandGrey-100' : activeTab !== 0 }" class=" text-lg xl:text-[1.375rem] group relative py-4 px-6 font-light md:font-medium focus:z-10 hover:cursor-pointer block hover:text-white hover:bg-brandGreen-100 border-r border-t border-l border-brandGreen "> <span>Financial conditions update</span> </a> <a @click="activeTab = 1" :class="{ 'text-white bg-brandGreen-100': activeTab === 1, 'text-brandGreen-100 bg-brandGrey-100' : activeTab !== 1 }" class=" text-lg xl:text-[1.375rem] group relative py-4 px-6 font-light md:font-medium focus:z-10 hover:cursor-pointer block hover:text-white hover:bg-brandGreen-100 border-r border-t border-l border-brandGreen "> <span>General Election results</span> </a> <a @click="activeTab = 2" :class="{ 'text-white bg-brandGreen-100': activeTab === 2, 'text-brandGreen-100 bg-brandGrey-100' : activeTab !== 2 }" class=" text-lg xl:text-[1.375rem] group relative py-4 px-6 font-light md:font-medium focus:z-10 hover:cursor-pointer block hover:text-white hover:bg-brandGreen-100 border-r border-t border-l border-brandGreen "> <span>Investment grade credit spreads at historic lows</span> </a> <a @click="activeTab = 3" :class="{ 'text-white bg-brandGreen-100': activeTab === 3, 'text-brandGreen-100 bg-brandGrey-100' : activeTab !== 3 }" class=" text-lg xl:text-[1.375rem] group relative py-4 px-6 font-light md:font-medium focus:z-10 hover:cursor-pointer block hover:text-white hover:bg-brandGreen-100 border-r border-t border-l border-brandGreen "> <span>Isio’s Independent Trustee Survey 2024</span> </a> <a @click="activeTab = 4" :class="{ 'text-white bg-brandGreen-100': activeTab === 4, 'text-brandGreen-100 bg-brandGrey-100' : activeTab !== 4 }" class=" text-lg xl:text-[1.375rem] group relative py-4 px-6 font-light md:font-medium focus:z-10 hover:cursor-pointer block hover:text-white hover:bg-brandGreen-100 border-r border-t border-l border-brandGreen "> <span>Incorporating illiquids into DC funds</span> </a> <a @click="activeTab = 5" :class="{ 'text-white bg-brandGreen-100': activeTab === 5, 'text-brandGreen-100 bg-brandGrey-100' : activeTab !== 5 }" class=" text-lg xl:text-[1.375rem] group relative py-4 px-6 font-light md:font-medium focus:z-10 hover:cursor-pointer block hover:text-white hover:bg-brandGreen-100 border-r border-t border-l border-brandGreen "> <span>PRO event for large scheme sponsors</span> </a> <a @click="activeTab = 6" :class="{ 'text-white bg-brandGreen-100': activeTab === 6, 'text-brandGreen-100 bg-brandGrey-100' : activeTab !== 6 }" class=" text-lg xl:text-[1.375rem] group relative py-4 px-6 font-light md:font-medium focus:z-10 hover:cursor-pointer block hover:text-white hover:bg-brandGreen-100 border-r border-t border-l border-brandGreen "> <span>Looking forward to next quarter</span> </a> </nav> </div> </div> </div> <div class="bg-brandGreen-100 pb-10 hidden md:block bg-no-repeat bg-left-bottom relative z-10 " style="background-image:url('')"> <div class="container bg-brandGreen-100 "> <div x-show="activeTab === 0" class="grid md:grid-cols-2 pt-12 gap-x-24"> <!-- Content for the tab goes here --> <div class=""> <div class="mb-10"> <p class="text-2xl font-light text-white"><strong>Change since 31 March 2024<strong /></p> </div> <div class="text-white text-xl font-light"> <p><img decoding="async" class="aligncenter wp-image-19929 size-full" src="https://www.isio.com/app/uploads/2024/07/IQ-Isio-Quarterly-July-market-update.gif" alt="" width="600" height="250" /></p> </div> </div> <div> <div class="text-white text-xl font-light"> <p> </p> <p><strong>Commentary</strong></p> <ul> <li>Corporate bond and gilt yields increased by c. 0.25-0.3% and long-term inflation fell by 2-3 basis points over the quarter</li> <li>Credit spreads increased slightly (less than 5 basis points) over the quarter</li> <li>Equity markets saw a positive quarter (returning c.+3%)</li> <li>These movements are likely to have improved buyout positions due to reductions in liabilities exceeding reductions in assets</li> <li>Accounting and funding positions are also expected to have improved in general, other than for well-hedged schemes with low proportions of return seeking assets</li> </ul> <a class="my-5 btn-primary btn-white " href="https://www.isio.com/app/uploads/2024/07/Accounting-in-Pensions-Post-30-June-2024.pdf">Download a deep-dive report </a> </div> <p class="text-white text-xl font-medium mb-6"></p> <p class="text-white text-xl font-medium mb-6 mt-6"></p> <div class="md:flex"> </div> </div> </div> <div x-show="activeTab === 1" class="grid md:grid-cols-2 pt-12 gap-x-24"> <!-- Content for the tab goes here --> <div class=""> <div class="mb-10"> <p class="text-2xl font-light text-white"><strong>New Labour government and what it could mean for pensions<strong /></p> </div> <div class="text-white text-xl font-light"> <p><strong>Background</strong><br /> With Labour securing a sizeable majority their promised pensions review has the potential to be more radical and grasp some of the thornier pensions issues. Their manifesto noted this would look to improve member outcomes, ensure schemes take advantage of consolidation, and to increase productive investment in UK markets. Although they dropped plans to reintroduce the Lifetime Allowance, pensions might be seen as a convenient target for ‘stealth’ taxes when fiscal circumstances are tight.</p> <p> </p> <p><span class="ui-provider a b c d e f g h i j k l m n o p q r s t u v w x y z ab ac ae af ag ah ai aj ak" dir="ltr">Emma Reynolds has been confirmed as the new pensions minister. Interestingly, she has been appointed to both the Department of Work and Pensions and the Treasury. This may be a deliberate attempt to provide a more joined up approach to policy and dealing with two separate regulatory bodies (The Pensions Regulator and the Financial Conduct Authority).</span></p> <p> </p> </div> </div> <div> <div class="text-white text-xl font-light"> <p><strong>Isio’s view</strong></p> <p>We hope the scope and timescale of a pensions review will be clarified quickly. Equally, it will be important to understand what existing pensions policy developments a new Pensions Minister will accelerate, put on the back-burner or bin altogether. Whilst ongoing initiatives such as CDCs and dashboards are likely to continue as planned there are some areas of uncertainty such as extension of auto-enrolment, DB surplus extraction and the PPF as a public sector consolidator. Proposed changes to employment laws will also see extended pay gap reporting requirements and greater policing through a Single Enforcement Body.</p> <p> </p> <p><strong>Why it matters</strong></p> <p>Whilst the change in government is unlikely to lead to an immediate change in direction of pensions policies, there could be a re-prioritisation which employers will have to adapt to. We hope to see longstanding policy initiatives finalised quickly, e.g. the new funding code, and areas of uncertainty addressed promptly, e.g. DB surplus extraction. For any changes to employment laws, we hope time will be given for proper industry consultation.</p> <a class="my-5 btn-primary btn-white " href="https://www.isio.com/insights/new-labour-government/">More on the government’s plans for pensions</a> </div> <p class="text-white text-xl font-medium mb-6"></p> <p class="text-white text-xl font-medium mb-6 mt-6"></p> <div class="md:flex"> </div> </div> </div> <div x-show="activeTab === 2" class="grid md:grid-cols-2 pt-12 gap-x-24"> <!-- Content for the tab goes here --> <div class=""> <div class="mb-10"> <p class="text-2xl font-light text-white"><strong>Investment grade credit spreads at historic lows – time to review?<strong /> </p> </div> <div class="text-white text-xl font-light"> <p><strong>Background</strong><br /> Investment grade corporate bond spreads have narrowed significantly since the gilt market crisis that occurred following 2022’s mini-budget. With credit spreads now at historic lows, there is little room for them to tighten further, limiting the additional return an investor might expect to receive over equivalent government bonds and providing limited protection against defaults.</p> <p> </p> <p><strong>Isio’s view</strong></p> <p>We see the downside risk of holding investment grade corporate bonds being greater than the upside. With spreads more likely to widen than to narrow further resulting in prices to fall relative to government bonds, we see an exposure for pension schemes’ funding positions to deteriorate. We believe there is merit in clients reviewing and reducing their exposure to investment grade credit, or pausing any planned increases.</p> </div> </div> <div> <div class="text-white text-xl font-light"> <p> </p> <p><strong>Why it matters</strong></p> <p>Investment grade corporate bonds have generally been seen as a key building block of de-risked investment portfolios, primarily due to the asset being perceived as low risk and providing a stable income and linkage to how insurers price insurance transactions. However, from our discussions with insurers we believe the link between corporate bond spreads and insurance pricing currently to be weak, meaning buying investment grade credit prior to insurance may not be an optimal strategy. Sponsors should challenge these preconceptions at current spreads and consider other assets which could provide a better risk-return outlook.</p> <p> </p> <p><img decoding="async" class="aligncenter wp-image-20007 size-full" src="https://www.isio.com/app/uploads/2024/07/Investment-grade-credit.jpg" alt="" width="1269" height="787" srcset="https://www.isio.com/app/uploads/2024/07/Investment-grade-credit.jpg 1269w, https://www.isio.com/app/uploads/2024/07/Investment-grade-credit-300x186.jpg 300w, https://www.isio.com/app/uploads/2024/07/Investment-grade-credit-1024x635.jpg 1024w, https://www.isio.com/app/uploads/2024/07/Investment-grade-credit-768x476.jpg 768w, https://www.isio.com/app/uploads/2024/07/Investment-grade-credit-720x447.jpg 720w, https://www.isio.com/app/uploads/2024/07/Investment-grade-credit-95x59.jpg 95w, https://www.isio.com/app/uploads/2024/07/Investment-grade-credit-354x220.jpg 354w, https://www.isio.com/app/uploads/2024/07/Investment-grade-credit-829x514.jpg 829w, https://www.isio.com/app/uploads/2024/07/Investment-grade-credit-366x227.jpg 366w, https://www.isio.com/app/uploads/2024/07/Investment-grade-credit-170x105.jpg 170w" sizes="(max-width: 1269px) 100vw, 1269px" /></p> <p> </p> </div> <p class="text-white text-xl font-medium mb-6"></p> <p class="text-white text-xl font-medium mb-6 mt-6"></p> <div class="md:flex"> </div> </div> </div> <div x-show="activeTab === 3" class="grid md:grid-cols-2 pt-12 gap-x-24"> <!-- Content for the tab goes here --> <div class=""> <div class="mb-10"> <p class="text-2xl font-light text-white"><strong>Uncovering the most influential Professional Trustees<strong /></p> </div> <div class="text-white text-xl font-light"> <p><strong>Background</strong></p> <p>With the growing burden of pensions regulation, trustee boards are under pressure to have the right skillsets to run their schemes effectively. Sponsors and trustees are increasingly turning to commercial trustee firms for support. Isio’s annual Independent Trustee survey uncovers the most influential firms and is a must-read for those selecting a professional trustee.</p> <p> </p> <p><strong>Isio’s view</strong></p> <p>The professional independent trustee market is thriving and among the most notable trends is the rise of sole trusteeship, including the increasing use of this model by larger schemes. There is also a growing differentiation in firms which ranges from firms that are focused exclusively on trusteeship to those that offer bundled models including a range of governance and support services.</p> </div> </div> <div> <div class="text-white text-xl font-light"> <p> </p> <p><strong>Why it matters</strong></p> <p>Having skilled and experienced trustees in place can enable faster decision-making and can often ease the burden on the sponsor’s management time. In addition, the Regulator is placing increased focus on the diversity of trustee boards which is further driving the growth in independent trustee appointments. Sponsors should consider whether their existing trustees have the right skills, capabilities and diversity to help deliver their future pensions strategy.</p> <p> </p> <p><img decoding="async" class="aligncenter" src="https://www.isio.com/app/uploads/2024/07/Picture2.png" alt="This image has an empty alt attribute; its file name is Picture2.png" /></p> <a class="my-5 btn-primary btn-white " href="https://www.isio.com/insights/isios-2024-professional-independent-trustee-survey/">Read the report</a> </div> <p class="text-white text-xl font-medium mb-6"></p> <p class="text-white text-xl font-medium mb-6 mt-6"></p> <div class="md:flex"> </div> </div> </div> <div x-show="activeTab === 4" class="grid md:grid-cols-2 pt-12 gap-x-24"> <!-- Content for the tab goes here --> <div class=""> <div class="mb-10"> <p class="text-2xl font-light text-white"><strong>What are DC providers planning?<strong /></p> </div> <div class="text-white text-xl font-light"> <p><strong>Background</strong></p> <p>Following the launch of the Mansion House Compact in 2023, there have been increased murmurings from DC providers regarding their plans to incorporate illiquid assets into their default investment strategies. However, the degree of transparency in these plans vary, with few clearly setting out their plans beyond stating “it’s in the pipeline”. Our DC Investment team have spoken to 12 major commercial Master Trusts on their plans for incorporating illiquid assets into their defaults.</p> <p></p> <p><strong>Isio’s view </strong></p> <p>We would like to see meaningful allocations to illiquid assets within DC defaults in the future with a clear plan from providers. We believe allocations should reflect diversification across managers and asset types within the ‘illiquid’ banner. We also hope providers view this as an opportunity to incorporate sustainable themes more boldly within defaults.</p> <p> </p> <p><strong>Why it matters</strong></p> <p>Adopting illiquids assets within DC defaults should help improve outcomes for members in retirement, but how providers implement this, and when, will be important. This is a new opportunity for DC providers and we expect to see significant innovation across the market over the coming months. Our series of papers on this over the next year aims to provide transparency in providers plans and adoption of this asset class.</p> <a class="my-5 btn-primary btn-white " href="https://www.isio.com/app/uploads/2024/05/DC-Quarterly-update-Q1-2024.pdf">See our DC market update</a> </div> </div> <div> <div class="text-white text-xl font-light"> <p><img loading="lazy" decoding="async" class="aligncenter wp-image-19997 size-full" src="https://www.isio.com/app/uploads/2024/07/Illiquids-for-DC-providers-table.png.jpg" alt="" width="1318" height="885" srcset="https://www.isio.com/app/uploads/2024/07/Illiquids-for-DC-providers-table.png.jpg 1318w, https://www.isio.com/app/uploads/2024/07/Illiquids-for-DC-providers-table.png-300x201.jpg 300w, https://www.isio.com/app/uploads/2024/07/Illiquids-for-DC-providers-table.png-1024x688.jpg 1024w, https://www.isio.com/app/uploads/2024/07/Illiquids-for-DC-providers-table.png-768x516.jpg 768w, https://www.isio.com/app/uploads/2024/07/Illiquids-for-DC-providers-table.png-720x483.jpg 720w, https://www.isio.com/app/uploads/2024/07/Illiquids-for-DC-providers-table.png-95x64.jpg 95w, https://www.isio.com/app/uploads/2024/07/Illiquids-for-DC-providers-table.png-354x238.jpg 354w, https://www.isio.com/app/uploads/2024/07/Illiquids-for-DC-providers-table.png-765x514.jpg 765w, https://www.isio.com/app/uploads/2024/07/Illiquids-for-DC-providers-table.png-366x246.jpg 366w, https://www.isio.com/app/uploads/2024/07/Illiquids-for-DC-providers-table.png-170x114.jpg 170w" sizes="(max-width: 1318px) 100vw, 1318px" /></p> <p> </p> <p> </p> <p>The majority of providers are moving towards a ‘two default’ route, with premium and low cost default options, although all providers are planning on including illiquids assets in at least one.</p> <a class="my-5 btn-primary btn-white " href="https://www.isio.com/app/uploads/2024/06/Illiquids.pdf">Find out more about illiquids</a> </div> <p class="text-white text-xl font-medium mb-6"></p> <p class="text-white text-xl font-medium mb-6 mt-6"></p> <div class="md:flex"> </div> </div> </div> <div x-show="activeTab === 5" class="grid md:grid-cols-2 pt-12 gap-x-24"> <!-- Content for the tab goes here --> <div class=""> <div class="mb-10"> <p class="text-2xl font-light text-white"><strong>Purposeful Run On – senior executives at large scheme sponsors give their view<strong /></p> </div> <div class="text-white text-xl font-light"> <p><strong>Background</strong><br /> With UK DB schemes better funded than they have been for decades, employers are considering whether to take the opportunity to remove DB schemes from their balance sheets at the earliest opportunity or seek to benefit from surpluses as they emerge. Against this backdrop, we hosted a roundtable event for senior executives sponsoring large UK DB schemes.</p> <p> </p> <p><strong>Isio’s view</strong></p> <p>The main themes emerging from the discussion are shown in our report opposite. In our view, there are several changes that could help turn DB schemes from a “problem” into an “opportunity” e.g. the legislative changes consulted on by the previous Government and better guidance from the Pensions Regulator that reflects the reality of surplus. However, for many schemes surplus can already be released gradually under existing legislation, and sponsors should find out whether this applies for their schemes.</p> <a class="my-5 btn-primary btn-white " href="https://www.isio.com/outpacing-change/">See how we are outpacing change</a> </div> </div> <div> <div class="text-white text-xl font-light"> <p> </p> <p><strong>Why it matters</strong><br /> Deciding whether to insure at the earliest opportunity or adopt a Purposeful Run On for the medium to long-term (or something in-between) will be the most financially important decision that most trustees and employers ever agree for their schemes. The views of the sponsor are crucial, but trustees typically hold much of the power in “endgame” discussions. It can be easier to agree the sponsors preferred approach if it is raised early, so it is important for sponsors to quantitatively assess different options.</p> <a class="my-5 btn-primary btn-white " href="https://www.isio.com/app/uploads/2024/07/PRO-roundtable-Purposeful-run-on.pdf">View report</a> </div> <p class="text-white text-xl font-medium mb-6"></p> <p class="text-white text-xl font-medium mb-6 mt-6"></p> <div class="md:flex"> </div> </div> </div> <div x-show="activeTab === 6" class="grid md:grid-cols-2 pt-12 gap-x-24"> <!-- Content for the tab goes here --> <div class="md:col-span-2"> <div class="text-white text-xl font-light"> <p> </p> <ul> <li>The appeal for the Virgin Media Ltd v NTL case, which could have implications for schemes that haven’t found relevant S37 certificates, was heard by the Court of Appeal on the 25th June. However, it’s also not clear whether the appeal ruling will clarify the position for all schemes going forward. We anticipate the judgement will be published early Autumn but this has not been made clear yet.</li> </ul> <p> </p> <ul> <li>Isio will be hosting its first ever Investment Conference in London this October. We would love for you to join us for an insightful afternoon where we will delve into new innovative investment strategies, societal impacts, and tomorrow’s key asset classes – against the backdrop of the new Labour government in the UK and impending elections in the US. <strong><a href="https://www.isio.com/isio-investment-conference/"><span style="text-decoration: underline">You can register here</span></a></strong>.</li> </ul> <p> </p> <ul> <li>We’ll also be hosting an accounting webinar in Autumn covering what Sponsors should be thinking about from an accounting perspective at the 2024 year-end. If you’d like to receive an invite, please <a href="https://www.isio.com/subscribe-to-iq/"><span style="text-decoration: underline"><strong>join our mailing list</strong></span></a>.</li> </ul> <a class="my-5 btn-primary btn-white " href="https://www.isio.com/subscribe-to-iq/">Subscribe to IQ</a> </div> </div> </div> </div> </div> </section> <!-- Mobile version of block --> <section class="py-6 md:hidden bg-brandGreen-100"> <dl class="container divide-y divide-white"> <div class="py-5 border-1"> <dt> <!-- Expand/collapse question button --> <button type="button" class="flex w-full items-start justify-between text-left text-white" aria-controls="faq-0" aria-expanded="false"> <span class="text-2xl">Financial conditions update</span> <span class="md:ml-6 flex h-7 items-center"> <svg class="h-6 w-6 inline-block relative md:left-5 md:-top-2" xmlns="http://www.w3.org/2000/svg" width="24" height="13" viewBox="0 0 24 13" fill="none"> <path d="M1.5 1.5L12 12L22.5 1.5" stroke="white" stroke-width="2" stroke-linejoin="round" /> </svg> <svg class="rotate-180 hidden h-6 w-6 inline-block relative md:left-5 md:-top-2" xmlns="http://www.w3.org/2000/svg" width="24" height="13" viewBox="0 0 24 13" fill="none"> <path d="M1.5 1.5L12 12L22.5 1.5" stroke="white" stroke-width="2" stroke-linejoin="round" /> </svg> </span> </button> </dt> <dd class="mt-5 pr-12" id="faq-0" style="display: none;"> <div class=""> <div class="mb-10"> <p class="text-2xl font-light text-white"><strong>Change since 31 March 2024<strong /></p> </div> <div class="text-white text-xl font-light"> <p><img decoding="async" class="aligncenter wp-image-19929 size-full" src="https://www.isio.com/app/uploads/2024/07/IQ-Isio-Quarterly-July-market-update.gif" alt="" width="600" height="250" /></p> <p> </p> <p><strong>Commentary</strong></p> <ul> <li>Corporate bond and gilt yields increased by c. 0.25-0.3% and long-term inflation fell by 2-3 basis points over the quarter</li> <li>Credit spreads increased slightly (less than 5 basis points) over the quarter</li> <li>Equity markets saw a positive quarter (returning c.+3%)</li> <li>These movements are likely to have improved buyout positions due to reductions in liabilities exceeding reductions in assets</li> <li>Accounting and funding positions are also expected to have improved in general, other than for well-hedged schemes with low proportions of return seeking assets</li> </ul> <a class="my-5 btn-primary btn-white " href="https://www.isio.com/app/uploads/2024/07/Accounting-in-Pensions-Post-30-June-2024.pdf">Download a deep-dive report </a> </div> </div> </dd> </div> <div class="py-5 border-1"> <dt> <!-- Expand/collapse question button --> <button type="button" class="flex w-full items-start justify-between text-left text-white" aria-controls="faq-1" aria-expanded="false"> <span class="text-2xl">General Election results</span> <span class="md:ml-6 flex h-7 items-center"> <svg class="h-6 w-6 inline-block relative md:left-5 md:-top-2" xmlns="http://www.w3.org/2000/svg" width="24" height="13" viewBox="0 0 24 13" fill="none"> <path d="M1.5 1.5L12 12L22.5 1.5" stroke="white" stroke-width="2" stroke-linejoin="round" /> </svg> <svg class="rotate-180 hidden h-6 w-6 inline-block relative md:left-5 md:-top-2" xmlns="http://www.w3.org/2000/svg" width="24" height="13" viewBox="0 0 24 13" fill="none"> <path d="M1.5 1.5L12 12L22.5 1.5" stroke="white" stroke-width="2" stroke-linejoin="round" /> </svg> </span> </button> </dt> <dd class="mt-5 pr-12" id="faq-1" style="display: none;"> <div class=""> <div class="mb-10"> <p class="text-2xl font-light text-white"><strong>New Labour government and what it could mean for pensions<strong /></p> </div> <div class="text-white text-xl font-light"> <p><strong>Background</strong><br /> With Labour securing a sizeable majority their promised pensions review has the potential to be more radical and grasp some of the thornier pensions issues. Their manifesto noted this would look to improve member outcomes, ensure schemes take advantage of consolidation, and to increase productive investment in UK markets. Although they dropped plans to reintroduce the Lifetime Allowance, pensions might be seen as a convenient target for ‘stealth’ taxes when fiscal circumstances are tight.</p> <p> </p> <p><span class="ui-provider a b c d e f g h i j k l m n o p q r s t u v w x y z ab ac ae af ag ah ai aj ak" dir="ltr">Emma Reynolds has been confirmed as the new pensions minister. Interestingly, she has been appointed to both the Department of Work and Pensions and the Treasury. This may be a deliberate attempt to provide a more joined up approach to policy and dealing with two separate regulatory bodies (The Pensions Regulator and the Financial Conduct Authority).</span></p> <p> </p> <p><strong>Isio’s view</strong></p> <p>We hope the scope and timescale of a pensions review will be clarified quickly. Equally, it will be important to understand what existing pensions policy developments a new Pensions Minister will accelerate, put on the back-burner or bin altogether. Whilst ongoing initiatives such as CDCs and dashboards are likely to continue as planned there are some areas of uncertainty such as extension of auto-enrolment, DB surplus extraction and the PPF as a public sector consolidator. Proposed changes to employment laws will also see extended pay gap reporting requirements and greater policing through a Single Enforcement Body.</p> <p> </p> <p><strong>Why it matters</strong></p> <p>Whilst the change in government is unlikely to lead to an immediate change in direction of pensions policies, there could be a re-prioritisation which employers will have to adapt to. We hope to see longstanding policy initiatives finalised quickly, e.g. the new funding code, and areas of uncertainty addressed promptly, e.g. DB surplus extraction. For any changes to employment laws, we hope time will be given for proper industry consultation.</p> <a class="my-5 btn-primary btn-white " href="https://www.isio.com/insights/new-labour-government/">More on the government’s plans for pensions</a> </div> </div> </dd> </div> <div class="py-5 border-1"> <dt> <!-- Expand/collapse question button --> <button type="button" class="flex w-full items-start justify-between text-left text-white" aria-controls="faq-2" aria-expanded="false"> <span class="text-2xl">Investment grade credit spreads at historic lows</span> <span class="md:ml-6 flex h-7 items-center"> <svg class="h-6 w-6 inline-block relative md:left-5 md:-top-2" xmlns="http://www.w3.org/2000/svg" width="24" height="13" viewBox="0 0 24 13" fill="none"> <path d="M1.5 1.5L12 12L22.5 1.5" stroke="white" stroke-width="2" stroke-linejoin="round" /> </svg> <svg class="rotate-180 hidden h-6 w-6 inline-block relative md:left-5 md:-top-2" xmlns="http://www.w3.org/2000/svg" width="24" height="13" viewBox="0 0 24 13" fill="none"> <path d="M1.5 1.5L12 12L22.5 1.5" stroke="white" stroke-width="2" stroke-linejoin="round" /> </svg> </span> </button> </dt> <dd class="mt-5 pr-12" id="faq-2" style="display: none;"> <div class=""> <div class="mb-10"> <p class="text-2xl font-light text-white"><strong>Investment grade credit spreads at historic lows – time to review?<strong /> </p> </div> <div class="text-white text-xl font-light"> <p><strong>Background</strong><br /> Investment grade corporate bond spreads have narrowed significantly since the gilt market crisis that occurred following 2022’s mini-budget. With credit spreads now at historic lows, there is little room for them to tighten further, limiting the additional return an investor might expect to receive over equivalent government bonds and providing limited protection against defaults.</p> <p> </p> <p><strong>Isio’s view</strong></p> <p>We see the downside risk of holding investment grade corporate bonds being greater than the upside. With spreads more likely to widen than to narrow further resulting in prices to fall relative to government bonds, we see an exposure for pension schemes’ funding positions to deteriorate. We believe there is merit in clients reviewing and reducing their exposure to investment grade credit, or pausing any planned increases.</p> <p> </p> <p><strong>Why it matters</strong></p> <p>Investment grade corporate bonds have generally been seen as a key building block of de-risked investment portfolios, primarily due to the asset being perceived as low risk and providing a stable income and linkage to how insurers price insurance transactions. However, from our discussions with insurers we believe the link between corporate bond spreads and insurance pricing currently to be weak, meaning buying investment grade credit prior to insurance may not be an optimal strategy. Sponsors should challenge these preconceptions at current spreads and consider other assets which could provide a better risk-return outlook.</p> <p> </p> <p><img decoding="async" class="aligncenter wp-image-20007 size-full" src="https://www.isio.com/app/uploads/2024/07/Investment-grade-credit.jpg" alt="" width="1269" height="787" srcset="https://www.isio.com/app/uploads/2024/07/Investment-grade-credit.jpg 1269w, https://www.isio.com/app/uploads/2024/07/Investment-grade-credit-300x186.jpg 300w, https://www.isio.com/app/uploads/2024/07/Investment-grade-credit-1024x635.jpg 1024w, https://www.isio.com/app/uploads/2024/07/Investment-grade-credit-768x476.jpg 768w, https://www.isio.com/app/uploads/2024/07/Investment-grade-credit-720x447.jpg 720w, https://www.isio.com/app/uploads/2024/07/Investment-grade-credit-95x59.jpg 95w, https://www.isio.com/app/uploads/2024/07/Investment-grade-credit-354x220.jpg 354w, https://www.isio.com/app/uploads/2024/07/Investment-grade-credit-829x514.jpg 829w, https://www.isio.com/app/uploads/2024/07/Investment-grade-credit-366x227.jpg 366w, https://www.isio.com/app/uploads/2024/07/Investment-grade-credit-170x105.jpg 170w" sizes="(max-width: 1269px) 100vw, 1269px" /></p> <p> </p> </div> </div> </dd> </div> <div class="py-5 border-1"> <dt> <!-- Expand/collapse question button --> <button type="button" class="flex w-full items-start justify-between text-left text-white" aria-controls="faq-3" aria-expanded="false"> <span class="text-2xl">Isio’s Independent Trustee Survey 2024</span> <span class="md:ml-6 flex h-7 items-center"> <svg class="h-6 w-6 inline-block relative md:left-5 md:-top-2" xmlns="http://www.w3.org/2000/svg" width="24" height="13" viewBox="0 0 24 13" fill="none"> <path d="M1.5 1.5L12 12L22.5 1.5" stroke="white" stroke-width="2" stroke-linejoin="round" /> </svg> <svg class="rotate-180 hidden h-6 w-6 inline-block relative md:left-5 md:-top-2" xmlns="http://www.w3.org/2000/svg" width="24" height="13" viewBox="0 0 24 13" fill="none"> <path d="M1.5 1.5L12 12L22.5 1.5" stroke="white" stroke-width="2" stroke-linejoin="round" /> </svg> </span> </button> </dt> <dd class="mt-5 pr-12" id="faq-3" style="display: none;"> <div class=""> <div class="mb-10"> <p class="text-2xl font-light text-white"><strong>Uncovering the most influential Professional Trustees<strong /></p> </div> <div class="text-white text-xl font-light"> <p><strong>Background</strong></p> <p>With the growing burden of pensions regulation, trustee boards are under pressure to have the right skillsets to run their schemes effectively. Sponsors and trustees are increasingly turning to commercial trustee firms for support. Isio’s annual Independent Trustee survey uncovers the most influential firms and is a must-read for those selecting a professional trustee.</p> <p> </p> <p><strong>Isio’s view</strong></p> <p>The professional independent trustee market is thriving and among the most notable trends is the rise of sole trusteeship, including the increasing use of this model by larger schemes. There is also a growing differentiation in firms which ranges from firms that are focused exclusively on trusteeship to those that offer bundled models including a range of governance and support services.</p> <p> </p> <p><strong>Why it matters</strong></p> <p>Having skilled and experienced trustees in place can enable faster decision-making and can often ease the burden on the sponsor’s management time. In addition, the Regulator is placing increased focus on the diversity of trustee boards which is further driving the growth in independent trustee appointments. Sponsors should consider whether their existing trustees have the right skills, capabilities and diversity to help deliver their future pensions strategy.</p> <p> </p> <p><img decoding="async" class="aligncenter" src="https://www.isio.com/app/uploads/2024/07/Picture2.png" alt="This image has an empty alt attribute; its file name is Picture2.png" /></p> <a class="my-5 btn-primary btn-white " href="https://www.isio.com/insights/isios-2024-professional-independent-trustee-survey/">Read the report</a> </div> </div> </dd> </div> <div class="py-5 border-1"> <dt> <!-- Expand/collapse question button --> <button type="button" class="flex w-full items-start justify-between text-left text-white" aria-controls="faq-4" aria-expanded="false"> <span class="text-2xl">Incorporating illiquids into DC funds</span> <span class="md:ml-6 flex h-7 items-center"> <svg class="h-6 w-6 inline-block relative md:left-5 md:-top-2" xmlns="http://www.w3.org/2000/svg" width="24" height="13" viewBox="0 0 24 13" fill="none"> <path d="M1.5 1.5L12 12L22.5 1.5" stroke="white" stroke-width="2" stroke-linejoin="round" /> </svg> <svg class="rotate-180 hidden h-6 w-6 inline-block relative md:left-5 md:-top-2" xmlns="http://www.w3.org/2000/svg" width="24" height="13" viewBox="0 0 24 13" fill="none"> <path d="M1.5 1.5L12 12L22.5 1.5" stroke="white" stroke-width="2" stroke-linejoin="round" /> </svg> </span> </button> </dt> <dd class="mt-5 pr-12" id="faq-4" style="display: none;"> <div class=""> <div class="mb-10"> <p class="text-2xl font-light text-white"><strong>What are DC providers planning?<strong /></p> </div> <div class="text-white text-xl font-light"> <p><strong>Background</strong></p> <p>Following the launch of the Mansion House Compact in 2023, there have been increased murmurings from DC providers regarding their plans to incorporate illiquid assets into their default investment strategies. However, the degree of transparency in these plans vary, with few clearly setting out their plans beyond stating “it’s in the pipeline”. Our DC Investment team have spoken to 12 major commercial Master Trusts on their plans for incorporating illiquid assets into their defaults.</p> <p></p> <p><strong>Isio’s view </strong></p> <p>We would like to see meaningful allocations to illiquid assets within DC defaults in the future with a clear plan from providers. We believe allocations should reflect diversification across managers and asset types within the ‘illiquid’ banner. We also hope providers view this as an opportunity to incorporate sustainable themes more boldly within defaults.</p> <p> </p> <p><strong>Why it matters</strong></p> <p>Adopting illiquids assets within DC defaults should help improve outcomes for members in retirement, but how providers implement this, and when, will be important. This is a new opportunity for DC providers and we expect to see significant innovation across the market over the coming months. Our series of papers on this over the next year aims to provide transparency in providers plans and adoption of this asset class.</p> <p><img loading="lazy" decoding="async" class="aligncenter wp-image-19997 size-full" src="https://www.isio.com/app/uploads/2024/07/Illiquids-for-DC-providers-table.png.jpg" alt="" width="1318" height="885" srcset="https://www.isio.com/app/uploads/2024/07/Illiquids-for-DC-providers-table.png.jpg 1318w, https://www.isio.com/app/uploads/2024/07/Illiquids-for-DC-providers-table.png-300x201.jpg 300w, https://www.isio.com/app/uploads/2024/07/Illiquids-for-DC-providers-table.png-1024x688.jpg 1024w, https://www.isio.com/app/uploads/2024/07/Illiquids-for-DC-providers-table.png-768x516.jpg 768w, https://www.isio.com/app/uploads/2024/07/Illiquids-for-DC-providers-table.png-720x483.jpg 720w, https://www.isio.com/app/uploads/2024/07/Illiquids-for-DC-providers-table.png-95x64.jpg 95w, https://www.isio.com/app/uploads/2024/07/Illiquids-for-DC-providers-table.png-354x238.jpg 354w, https://www.isio.com/app/uploads/2024/07/Illiquids-for-DC-providers-table.png-765x514.jpg 765w, https://www.isio.com/app/uploads/2024/07/Illiquids-for-DC-providers-table.png-366x246.jpg 366w, https://www.isio.com/app/uploads/2024/07/Illiquids-for-DC-providers-table.png-170x114.jpg 170w" sizes="(max-width: 1318px) 100vw, 1318px" /></p> <p> </p> <p> </p> <p>The majority of providers are moving towards a ‘two default’ route, with premium and low cost default options, although all providers are planning on including illiquids assets in at least one.</p> <a class="my-5 btn-primary btn-white " href="https://www.isio.com/app/uploads/2024/06/Illiquids.pdf">Find out more about illiquids</a> <a class="my-5 btn-primary btn-white " href="https://www.isio.com/app/uploads/2024/05/DC-Quarterly-update-Q1-2024.pdf">See our DC market update</a> </div> </div> </dd> </div> <div class="py-5 border-1"> <dt> <!-- Expand/collapse question button --> <button type="button" class="flex w-full items-start justify-between text-left text-white" aria-controls="faq-5" aria-expanded="false"> <span class="text-2xl">PRO event for large scheme sponsors</span> <span class="md:ml-6 flex h-7 items-center"> <svg class="h-6 w-6 inline-block relative md:left-5 md:-top-2" xmlns="http://www.w3.org/2000/svg" width="24" height="13" viewBox="0 0 24 13" fill="none"> <path d="M1.5 1.5L12 12L22.5 1.5" stroke="white" stroke-width="2" stroke-linejoin="round" /> </svg> <svg class="rotate-180 hidden h-6 w-6 inline-block relative md:left-5 md:-top-2" xmlns="http://www.w3.org/2000/svg" width="24" height="13" viewBox="0 0 24 13" fill="none"> <path d="M1.5 1.5L12 12L22.5 1.5" stroke="white" stroke-width="2" stroke-linejoin="round" /> </svg> </span> </button> </dt> <dd class="mt-5 pr-12" id="faq-5" style="display: none;"> <div class=""> <div class="mb-10"> <p class="text-2xl font-light text-white"><strong>Purposeful Run On – senior executives at large scheme sponsors give their view<strong /></p> </div> <div class="text-white text-xl font-light"> <p><strong>Background</strong><br /> With UK DB schemes better funded than they have been for decades, employers are considering whether to take the opportunity to remove DB schemes from their balance sheets at the earliest opportunity or seek to benefit from surpluses as they emerge. Against this backdrop, we hosted a roundtable event for senior executives sponsoring large UK DB schemes.</p> <p> </p> <p><strong>Isio’s view</strong></p> <p>The main themes emerging from the discussion are shown in our report opposite. In our view, there are several changes that could help turn DB schemes from a “problem” into an “opportunity” e.g. the legislative changes consulted on by the previous Government and better guidance from the Pensions Regulator that reflects the reality of surplus. However, for many schemes surplus can already be released gradually under existing legislation, and sponsors should find out whether this applies for their schemes.</p> <p> </p> <p><strong>Why it matters</strong><br /> Deciding whether to insure at the earliest opportunity or adopt a Purposeful Run On for the medium to long-term (or something in-between) will be the most financially important decision that most trustees and employers ever agree for their schemes. The views of the sponsor are crucial, but trustees typically hold much of the power in “endgame” discussions. It can be easier to agree the sponsors preferred approach if it is raised early, so it is important for sponsors to quantitatively assess different options.</p> <a class="my-5 btn-primary btn-white " href="https://www.isio.com/app/uploads/2024/07/PRO-roundtable-Purposeful-run-on.pdf">View report</a> <a class="my-5 btn-primary btn-white " href="https://www.isio.com/outpacing-change/">See how we are outpacing change</a> </div> </div> </dd> </div> <div class="py-5 border-1"> <dt> <!-- Expand/collapse question button --> <button type="button" class="flex w-full items-start justify-between text-left text-white" aria-controls="faq-6" aria-expanded="false"> <span class="text-2xl">Looking forward to next quarter</span> <span class="md:ml-6 flex h-7 items-center"> <svg class="h-6 w-6 inline-block relative md:left-5 md:-top-2" xmlns="http://www.w3.org/2000/svg" width="24" height="13" viewBox="0 0 24 13" fill="none"> <path d="M1.5 1.5L12 12L22.5 1.5" stroke="white" stroke-width="2" stroke-linejoin="round" /> </svg> <svg class="rotate-180 hidden h-6 w-6 inline-block relative md:left-5 md:-top-2" xmlns="http://www.w3.org/2000/svg" width="24" height="13" viewBox="0 0 24 13" fill="none"> <path d="M1.5 1.5L12 12L22.5 1.5" stroke="white" stroke-width="2" stroke-linejoin="round" /> </svg> </span> </button> </dt> <dd class="mt-5 pr-12" id="faq-6" style="display: none;"> <div class="md:col-span-2"> <div class="text-white text-xl font-light"> <p> </p> <ul> <li>The appeal for the Virgin Media Ltd v NTL case, which could have implications for schemes that haven’t found relevant S37 certificates, was heard by the Court of Appeal on the 25th June. However, it’s also not clear whether the appeal ruling will clarify the position for all schemes going forward. We anticipate the judgement will be published early Autumn but this has not been made clear yet.</li> </ul> <p> </p> <ul> <li>Isio will be hosting its first ever Investment Conference in London this October. We would love for you to join us for an insightful afternoon where we will delve into new innovative investment strategies, societal impacts, and tomorrow’s key asset classes – against the backdrop of the new Labour government in the UK and impending elections in the US. <strong><a href="https://www.isio.com/isio-investment-conference/"><span style="text-decoration: underline">You can register here</span></a></strong>.</li> </ul> <p> </p> <ul> <li>We’ll also be hosting an accounting webinar in Autumn covering what Sponsors should be thinking about from an accounting perspective at the 2024 year-end. If you’d like to receive an invite, please <a href="https://www.isio.com/subscribe-to-iq/"><span style="text-decoration: underline"><strong>join our mailing list</strong></span></a>.</li> </ul> <a class="my-5 btn-primary btn-white " href="https://www.isio.com/subscribe-to-iq/">Subscribe to IQ</a> </div> </div> </dd> </div> </dl> </section> <section class="text-wrapper text-block medium-width "> <div class="container"> <div class="acf-innerblocks-container"> <h2 class="wp-block-heading" id="h-join-our-mailing-list">Join our mailing list</h2> <p><strong>Get the next issue of Isio Quarterly delivered straight to your inbox</strong></p> <div class="wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-2 wp-block-buttons-is-layout-flex"> <div class="wp-block-button has-custom-width wp-block-button__width-50"><a class="wp-block-button__link wp-element-button" href="https://share-eu1.hsforms.com/1Dlz5t4JiSEmTgQ-fFhEcoQg43y5" target="_blank" rel="noreferrer noopener">Subscribe now</a></div> </div> </div> </div> </section> <p>The post <a href="https://www.isio.com/news/isio-quarterly-july-2024/">Isio Quarterly July 2024</a> appeared first on <a href="https://www.isio.com">Isio</a>.</p> ]]></content:encoded> </item> <item> <title>Isio secures new investment from Aquiline to support future growth</title> <link>https://www.isio.com/news/isio-secures-new-investment-from-aquiline-to-support-future-growth/</link> <dc:creator><![CDATA[Daniel Owen]]></dc:creator> <pubDate>Tue, 02 Jul 2024 11:40:18 +0000</pubDate> <guid isPermaLink="false">https://www.isio.com/?post_type=news&p=19668</guid> <description><![CDATA[<p>The post <a href="https://www.isio.com/news/isio-secures-new-investment-from-aquiline-to-support-future-growth/">Isio secures new investment from Aquiline to support future growth</a> appeared first on <a href="https://www.isio.com">Isio</a>.</p> ]]></description> <content:encoded><![CDATA[ <section class="text-wrapper text-block medium-width "> <div class="container"> <div class="acf-innerblocks-container"> <h2 class="wp-block-heading" id="h-challenger-brand-set-for-next-phase-of-success"><strong>Challenger brand set for next phase of success</strong></h2> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <p><strong>2 July 2024: </strong>Isio, one of the fastest growing pensions, reward and benefit and investment advisory businesses in the UK, has secured new investment from Aquiline Capital Partners LP (“Aquiline”), a private investment specialist in financial services and related technologies, to support the next phase of its growth. The investment, subject to regulatory requirements, will see Exponent, which has supported Isio from before its inception in March 2020 exit its investment in the business.</p> <p>Isio launched to challenge the status quo in pensions, benefits and investment advisory. It has experienced significant growth over the past four years, more than doubling revenue, profit and headcount, and now employs 1,200 people across 10 UK offices.</p> <p>The new investment from Aquiline, which has deep experience in the global retirement and wealth management services sectors, will support Isio to continue its ambitious growth trajectory with a focus on delivering value for clients through innovation.</p> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <p><strong>Andrew Coles, Chief Executive of Isio</strong>, commented: “We have had an exceptional four years working in close partnership with Exponent from the carve out and set up phase and to then support us and to grow our business, creating opportunities for our people and clients. We are grateful for their belief and support which has enabled our success today. Our clients and our people have responded well to Isio bringing a bold and innovative approach to the market with a willingness to do things differently.</p> <p>“This new investment from Aquiline will enable us to continue the journey of bringing high quality service and better outcomes to our clients. Key to this is having a culture that appeals to the best talent in the sector with long-term, high quality career opportunities. I am personally excited about the future and look forward to continuing to lead Isio in its next phase of evolution and growth.”</p> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <p><strong>Igno van Waesberghe, Managing Partner at Aquiline</strong>, commented: “We are delighted to be investing in Isio. It operates in sectors where we have extensive experience and deep networks. </p> <p>“Isio is a business we have admired and got to know well, not simply as an investment, but first as our advisor and then our partner. We have been particularly impressed by the depth of their expertise in creating better outcomes for clients. It has delivered impressive organic growth and successful expansion through strategic M&A. We look forward to working with Isio’s management team to continue to develop their offering, diversify the business, and support them in further accelerating growth.”</p> <div style="height:20px" aria-hidden="true" class="wp-block-spacer"></div> <p><strong>Tim Easingwood, Partner at Exponent, </strong>commented:“Isio’s journey, from the original carve out and stand up of the independent business in 2020, to the powerful advisory business of scale today, has been hugely gratifying to be part of. During our investment, Andrew and the management team have created a market-leading proposition centred on exceptional client service and an entrepreneurial approach, resulting in strong growth and an exciting outlook. We are confident that Isio will continue to thrive with Aquiline’s investment and keep delivering on its ambitious goals. We wish the whole Isio team every success in the next stage of the business’ exciting journey.”</p> <p>Exponent and Isio were advised by Evercore (financial adviser) and Macfarlanes (legal adviser). Isio’s management were also advised by Liberty Corporate Finance and Proskauer. Aquiline were advised by RBC Capital Markets and Herbert Smith Freehills.</p> </div> </div> </section> <p>The post <a href="https://www.isio.com/news/isio-secures-new-investment-from-aquiline-to-support-future-growth/">Isio secures new investment from Aquiline to support future growth</a> appeared first on <a href="https://www.isio.com">Isio</a>.</p> ]]></content:encoded> </item> </channel> </rss>