Schroders executes SYPA risk management strategy
June 7, 2018

Schroders is today announcing that it has executed a £2.6 billion equity risk management strategy for the South Yorkshire Pensions Authority (SYPA). It says this is understood to be one of the largest of its type undertaken to date in the Local Government Pension Scheme space. 

The strategy has been co-designed by Schroders' Portfolio Solutions team with the aim of mitigating losses for SYPA in the event of a significant decline in equity markets. 

Over the last few years SYPA has seen significant increases in its portfolio and was keen to manage its funding position through to the next valuation.

Schroders says it worked closely with SYPA and its consultant Mercer to deliver this ‘put spread collar' approach. While maximizing downside protection was the core focus, the strategy was designed to manage total cost and to maintain as much upside potential as possible for SYPA. 

Schroders adds that it also designed and set up a bespoke pooled fund for the strategy, a move which has minimized SYPA's administrative and governance requirements. 





This site, like many others, uses small files called cookies to customize your experience. Cookies appear to be blocked on this browser. Please consider allowing cookies so that you can enjoy more content across fundservices.net.

How do I enable cookies in my browser?

Internet Explorer
1. Click the Tools button (or press ALT and T on the keyboard), and then click Internet Options.
2. Click the Privacy tab
3. Move the slider away from 'Block all cookies' to a setting you're comfortable with.

Firefox
1. At the top of the Firefox window, click on the Tools menu and select Options...
2. Select the Privacy panel.
3. Set Firefox will: to Use custom settings for history.
4. Make sure Accept cookies from sites is selected.

Safari Browser
1. Click Safari icon in Menu Bar
2. Click Preferences (gear icon)
3. Click Security icon
4. Accept cookies: select Radio button "only from sites I visit"

Chrome
1. Click the menu icon to the right of the address bar (looks like 3 lines)
2. Click Settings
3. Click the "Show advanced settings" tab at the bottom
4. Click the "Content settings..." button in the Privacy section
5. At the top under Cookies make sure it is set to "Allow local data to be set (recommended)"

Opera
1. Click the red O button in the upper left hand corner
2. Select Settings -> Preferences
3. Select the Advanced Tab
4. Select Cookies in the list on the left side
5. Set it to "Accept cookies" or "Accept cookies only from the sites I visit"
6. Click OK

Schroders is today announcing that it has executed a £2.6 billion equity risk management strategy for the South Yorkshire Pensions Authority (SYPA). It says this is understood to be one of the largest of its type undertaken to date in the Local Government Pension Scheme space. 

The strategy has been co-designed by Schroders' Portfolio Solutions team with the aim of mitigating losses for SYPA in the event of a significant decline in equity markets. 

Over the last few years SYPA has seen significant increases in its portfolio and was keen to manage its funding position through to the next valuation.

Schroders says it worked closely with SYPA and its consultant Mercer to deliver this ‘put spread collar' approach. While maximizing downside protection was the core focus, the strategy was designed to manage total cost and to maintain as much upside potential as possible for SYPA. 

Schroders adds that it also designed and set up a bespoke pooled fund for the strategy, a move which has minimized SYPA's administrative and governance requirements. 



Free subscription - selected news and optional newsletter
Premium subscription
  • All latest news
  • Latest special reports
  • Your choice of newsletter timing and topics
Full-access magazine subscription
  • 7-year archive of news
  • All past special reports
  • Newsletter with your choice of timing and topics
  • Access to more content across the site