Pensions First launched to assist defined benefit schemes

by Gill Montia

Story link: Pensions First launched to assist defined benefit schemes

A new company is being launched, which aims to help pension schemes balance their books.

Pensions First will be chaired by Amelia Fawcett, the former vice-chairman and chief operating officer of Morgan Stanley.

Its managing partner is Timothy Lyons, a former banker at Credit Suisse First Boston and Salomon Brothers.

The new business aims to overcome issues that dog defined benefit pension schemes, such as the chance that scheme members will live longer than expected.

It will achieve this by the use of complex financial structures, such as securitisations, which should enable pension schemes to meet their liabilities accurately.

The pensions market is estimated to be worth £1.5 trillion and Ms Fawcett believes there is “a huge market for scheme-specific investment solutions that can manage away longevity risk in a way that’s not been done before”.

Pensions First is reported to have raised its capital from a Japanese investment bank and an unnamed individual who founded a hedge fund.

Ms Fawcett herself spent 20 years with Morgan Stanley during which time she became one of the most powerful women in London banking circles.

She also helped in the setting up of the Financial Services Authority and is well known for her support of a number of charities.