Each year, GSAM’s Pensions Solutions team perform a comprehensive review of the defined benefit pension schemes of every company in the FTSE 350, based on information provided in their annual report and accounts.
We have been running this survey since 2011 and it covers the 170 defined benefit pension schemes in the index, with assets ranging from £100 million to above £5 billion.
If you would like to discuss the below trends and drivers behind them in more detail, please click here to get in touch with the team.
The team focused their analysis in three key areas and identified the below key themes:
Source: GSAM Global Portfolio Solions, company annual reports as of September 2019.
Source: GSAM, company reports and accounts
Annuity purchase activity has picked up after significantly...
Source: GSAM Global Portfolio Solutions and Professional Pensions, as of September 2019. LCP pensions de-risking report: Buy-ins, buy-outs and longevity swaps as of March 2019. Note 2019 annuity purchase is an estimate. PPF Purple Books
Source: GSAM, company reports and accounts, as of December 2018.
In the chart above each dot represents a scheme. The vertical axis shows contributions as a percentage of assets while the horizontal axis shows benefit payments as a percentage of assets. Schemes below the diagonal line have more cash leaving the scheme than coming in and are therefore in a cashflow negative position.