{"id":16392,"date":"2024-01-09T12:18:48","date_gmt":"2024-01-09T12:18:48","guid":{"rendered":"https:\/\/www.isio.com\/?page_id=16392"},"modified":"2024-01-09T12:22:45","modified_gmt":"2024-01-09T12:22:45","slug":"lgps-ew-low-risk-funding-index-appendix","status":"publish","type":"page","link":"https:\/\/www.isio.com\/lgps-ew-low-risk-funding-index-appendix\/","title":{"rendered":"LGPS (E&#038;W) \u2013 Low-Risk Funding Index appendix"},"content":{"rendered":"\n<section class=\"text-wrapper text-block  full-width \">\n    <div class=\"container\">\n        <div class=\"acf-innerblocks-container\">\n\n<p>This Appendix sets out further information on the data used and methodologies adopted in preparing the LGPS (E&amp;W) Low-Risk Funding Index.<\/p>\n\n\n\n<p><strong><em>Data<\/em><\/strong><\/p>\n\n\n\n<p>The information set out within this update is based on the results published as part of the 2022 actuarial valuation exercise for LGPS (England &amp; Wales) funds. The results can be viewed here:&nbsp;<a href=\"https:\/\/www.lgpsboard.org\/index.php\/fund-valuations-2022\">LGPS Scheme Advisory Board &#8211; Fund Valuations 2022 (lgpsboard.org)<\/a><\/p>\n\n\n\n<p><strong><em>Methodology<\/em><\/strong><\/p>\n\n\n\n<p>In calculating the liability values:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>An approximate rollforward has been carried out using standard actuarial methodologies, allowing for future accrual of benefits, changes in market conditions (including inflation experience reflecting the difference in actual vs assumed inflation) and estimated net cash flows<\/li>\n\n\n\n<li>The longevity and other demographic assumptions remain the same as those set out within the published results mentioned above<\/li>\n\n\n\n<li>Where fund-specific details are unavailable within the publicly available results, reasonable assumptions have been made<\/li>\n\n\n\n<li>A \u201clow-risk\u201d funding basis has been presented, whereby the discount rate used to value liabilities has been set in line with fixed interest government bond yields at the corresponding dates (at an appropriate duration). There are other views of what a \u201clow-risk\u201d basis may be. The basis we have adopted (discount rate based on long term gilt yields with no margin) is used as an illustration of a set of assumptions where an investment strategy could be designed such that if fully funded there is a very low likelihood any future deficit would arise for past service liabilities<\/li>\n<\/ul>\n\n\n\n<p>In calculating the asset values:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>An approximate rollforward has been carried out, allowing for cashflows in\/out and estimated investment returns based on general market indices suitable to the asset classes held<\/li>\n\n\n\n<li>Assets held by funds have been grouped approximately using their strategic asset allocations (provided either within the published valuation reports or the investment strategy statements). The groups are as follows:<\/li>\n<\/ul>\n\n\n\n<p>&#8211; Growth assets (UK)<\/p>\n\n\n\n<p>&#8211; Growth assets (non-UK)<\/p>\n\n\n\n<p>&#8211; Income \/ alternative assets<\/p>\n\n\n\n<p>&#8211; Protection assets<\/p>\n\n\n\n<p>Further details regarding the data and methodology used to calculate the information set out within this update can be provided if required.<\/p>\n\n\n\n<p><strong><em>Reliances and limitations<\/em><\/strong><\/p>\n\n\n\n<p>The numerical information set out within the update has been calculated using approximate methods and has been provided for information purposes only. It should not be considered as advice or be relied upon in making any financial decisions.<\/p>\n\n\n\n<p>This work is compliant with the Technical Actuarial Standard TAS 100 published by the Financial Reporting Council, so far as their requirements are material for this.<\/p>\n\n\n\n    <div class=\"spacer bg-transparent small\"><\/div>\n\n\n<\/div>\n    <\/div>\n<\/section>\n\n\n\n\n<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\">\n\t<div class=\"container text-white flex flex-col md:flex-row items-center space-between h-full\">\n\t\t<div class=\"flex flex-col xl:flex-row items-center md:items-start xl:items-center\">\n\t\t\t<h2 class=\"text-left text-5xl xl:basis-[400px] mb-8 xl:mb-0\">Get in touch<\/h2>\n\t\t\t<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>\n\t\t<\/div>\n\t\t<div class=\"flex flex-col xl:flex-row items-center\">\n\t\t\t\t\t\t\t<a href=\"tel: +44 (20) 7123 6000\" class=\"xl:w-[280px] font-semibold text-[26px] whitespace-nowrap\">+44 (20) 7123 6000<\/a>\n            \t\t\t                <a class=\"btn-primary btn-white whitespace-nowrap mt-6 xl:mt-0\" href=\"https:\/\/www.isio.com\/contact-us\/\" >Contact us<\/a>\n                \t\t<\/div>\n\t<\/div>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":3,"featured_media":69,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-16392","page","type-page","status-publish","has-post-thumbnail","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.8 (Yoast SEO v23.8) - 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