The trustee of the Scapa Group’s pension schemes has appointed Mercer to provide investment services including de-risking for its two defined benefit (DB) schemes.
The global adhesive tape manufacturer’s schemes have a combined fund value of around £80 million.
Before undertaking a complex investment and liability hedging review, Scapa’s trustee evaluated the overall governance structure and recognised the schemes could benefit from delegating the execution of the investment plan.
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Scapa has worked with Mercer to formulate a de-risking strategy, agree objectives and parameters, and create a framework.
Sheila Hill, pensions manager at Scala Group, said: “The team from Mercer gave us the confidence to move forward on an implemented basis.
“In particular, the de-risking website is extremely informative and allows us to keep track of our schemes’ funds on a regular basis.”
Dan Melley, UK leader for dynamic de-risking solutions at Mercer, said: “Going down an implemented consulting, or fiduciary management route, does involve delegation, but not abdication.
“Therefore, trustees need to be kept up-to-date, and communication flow is critical.”
Read more articles on de-risking pension schemes