A strategy co-designed by Schroders to protect against a downturn in equity values has been implemented by the South Yorkshire Pensions Authority (SYPA). The investment manager said the “put spread collar” approach, valued at £2.6bn, would manage total cost while maintaining “as much upside potential as possible for SYPA”.
Geroge Graham, fund director at SYPA, said: “The rise in equity markets in recent years presents South Yorkshire, in common with many pension funds, with a new set of challenges to reduce the risk of negative market impacts while maintaining a focus on growth. This solution helps us achieve this in a cost effective and transparent way.”
Reports
Most read in
- IFRS 9 override extended to 2029 for existing investments(47 views)
- After EFS: Worcestershire s151 Phil Rook on the uncertain road to financial resilience(33 views)
- Richard Harbord: section 114 was never meant for today’s crisis(31 views)
- Yes Minister: Treasury ‘confident’ LGPS pool’s FCA authorisations can be achieved by March 2026(23 views)
- New: LGPS regional investment special report(21 views)
- Westminster borrows £235m over 42 years to acquire temporary accommodation – an ‘innovative’ solution or should government do more?(19 views)
- The rise of the senior LGPS officer: how will the new role impact funds?(17 views)
- ‘Golden opportunity to turn ship around’ must not be squandered in Spending Review, say London boroughs(17 views)
- Room151 LGPS podcast: investing in venture capital climate solutions(16 views)
- The government’s push to merge pools lacks transparency(15 views)
More from
Scaling up efficiencies could be key to successful AI adoption in local government
The adoption of artificial intelligence in local government could be just as much about maximising available resources – essentially doing more with less – as it is about making immediate financial savings or efficiencies.
(Shutterstock)