Catch improvements in your funding level

f1rstflight

Funding levels are volatile

75%

Mar

-06

Sep-0

6

Mar

-07

Sep-0

7

Mar

-08

Sep-0

8

Mar

-09

Sep-0

9

Mar

-10

Sep-1

0

Mar

-11

Sep-1

1

Mar

-12

Sep-1

2

Mar

-13

Sep-1

3

Mar

-14

Sep-1

4

Mar

-15

Sep-1

5

Mar

-16

Sep-1

6

Mar

-17

80%

85%

90%

95%

100%

105%

110%

115%

120%

Source: PPF/The Pensions Regulator

PPF funding ratio of schemes

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Because pension scheme funding levels are volatile, investment switches need to be made at the right moment. f1rstflight monitors your scheme closely, and protects your funding levels by identifying the best time to switch your investments.

f1rstflight catches improvements in funding levels before they disappear.

What is f1rstflight?

What is your long-term funding strategy? Is it to have a self-sufficient Scheme, or enough money to buy out your Scheme with an insurer?

When you’re planning to improve your funding position, you need to strike the right balance between improved asset returns and increased payments into your Scheme.

Over time, you can consider shifting from higher-risk growth assets to matching liabilities or investments that offer lower risk and growth levels. This helps protect your funding improvements. Regular pre-agreed adjustments to your investment strategy can then give you a smooth and steady progression to a fully-funded Scheme.

That’s the theory. Unfortunately, real life doesn’t work out like that. Assets and liabilities are volatile, and funding levels even more so, as this graph shows.

Volatility can be a threat if you switch from growth assets to lower risk assets when the funding position has worsened, as the lower returns are less likely to get you back on track. But if the switch can be timed to take place when the funding position has improved more than expected, then it can be a great opportunity to reduce risk.

f1rstflight helps pension trustees choose the best time to make investment switches.

f1rstflight is a regular monitoring service, with defined triggers for action, that puts trustees in a position to take advantage of opportunities, as they arise.

We offer a range of services that will meet the specific needs of your pension scheme, from simple market-based yield triggers to bespoke funding-level monitoring on a daily basis.

How f1rstflight works

We’ve de-risked our Scheme twice recently using f1rstflight. Each time it was a real comfort to protect improvements in

our funding level and give ourselves much greater certainty of reaching the point where it’s unlikely the Scheme

will need further contributions from the Company.

Mark Bent, Chair of the Trustees of the UCI Logistics Pension Scheme 5

Peace of mind that you don’t miss the chance to lock in improvements in funding

Transition implementation

Fast and efficient execution of pre-agreed switches when triggers are breached

Online access

Ability to view your position daily

Scheme specific modelling Showing the evolution of your assets and liabilities

Regular reporting

Monthly snapshots that keep you informed of funding level progress

How does f1rstflight help? Get in Touch

We’d love to discuss with you how f1rstflight can help you.

Richard Lunt richard.lunt@firstactuarial.co.uk Tel: 0113 818 7340 Mobile: 07472 241 488

Andrew Overend andrew.overend@firstactuarial.co.uk Tel: 0113 818 7349

Mobile: 07400 410 598

First Actuarial LLP is a nationwide partnership with over 250 staff spread across 5 offices. Each office provides our whole range of services.

We provide straightforward investment advice so our clients understand their options and can make robust, well informed decisions.

About us

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First, we sit down with you and agree a long term plan. We then agree future changes to your investment strategy, based on how your funding level changes. This might involve switches from growth to liability matching assets, for example.

With f1rstflight, we can make these switches at the right moment, implementing them quickly to lock in any sudden gains. This makes achieving your target date more likely, and reduces the uncertainties in your long-term planning.

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Basingstoke Leeds Manchester Peterborough Tonbridge

Regulated in the UK by the Institute and Faculty of Actuaries in respect of a range of investment business activities.

First Actuarial LLP is a limited liability partnership. Registered in England & Wales Number OC348086.

Registered address: First Actuarial LLP, Mayesbrook House, Lawnswood Business Park, Leeds, LS16 6QY.