Merseyside Pension Fund has appointed investment adviser Schroders Solutions to implement an equity protection strategy for £3.8 billion in assets. 

Schroders Solutions, part of asset management giant Schroders, said the strategy “enables the scheme to maintain its equity exposures in order to meet its long-term performance objectives, while effectively managing downside risk.”

It said it also provides support for the fund’s private asset positioning, ensuring a balanced allocation between liquid and illiquid exposures, even in the event of a sell-off in listed markets.

Shroders has long worked with Northern LGPS, the collective asset pool for the pension funds of Greater Manchester, Merseyside and West Yorkshire. It said it has collaborated extensively with Merseyside to design a solution to safeguard the scheme’s equity portfolios from any downturn, ahead of its triennial valuation in 2025.

Peter Wallach, Director of Pensions, Merseyside Pension Fund said: “We are very pleased with the advice and support of Schroders Solutions in working with us to implement an equity protection strategy that aligns with changes to our investment strategy and provides some stability in the funding level ahead of next year’s actuarial valuation.”

James Barham, Executive Chairman, Schroders Solutions, said: “We are delighted to have been selected to work with Merseyside on this important project. Developing innovative solutions that work in partnership with the scheme’s investment strategy is one of our core competences and we look forward to developing our relationship over the coming years.”