P-Solve Risk Management Solutions (RMS) has been advising on and implementing derivative solutions for our clients since early 2003. We believe we implemented the first equity derivative solution used by a UK defined benefit pension fund. To date we have implemented around 40 derivative solutions, the majority of which were designed, modelled, negotiated and executed by us in house.
The team has extensive experience in Liability Driven Investment (LDI) using Inflation and Interest Rate Swaps to manage liability risk for pension schemes. We implement bespoke solutions tailored to our clients needs. We also design innovative Equity Derivative Overlay Solutions (EDOS), also on a bespoke basis, to manage equity risk whilst still benefiting from equity type returns and maintaining capital protection.
In addition we operate the Mirror Fund which is a pooled liability hedging solution for the exclusive benefit of clients invested in the TIGS portfolio. This retains all the advantages of the largely "unfunded" nature of a swap overlay but greatly simplifies the documentation and governance requirements.
We are also able to offer advice on a number of other situations where derivatives can be used to manage risk, including corporate strategy. We are continuously considering ways in which strategies can be designed or improved to take advantage of current market conditions.
We operate a full service from basic education, design, assistance with legal documentation, implementation and on going management. At all steps in the timeline we keep our clients fully informed and educated and explain any residual risks that the scheme is still exposed to.
The team is dedicated to providing low cost pragmatic tailored solutions using innovative techniques.
