Pension Monthly
NatWest Markets Pension Update

14th April 2020

Executive Summary

Please see the attachment here


  • Monthly Educational Update: we look at how covenant risk for pension schemes has been impacted by COVID-19 and using financial accounts, analyse the changes in surpluses/deficits, on both a Technical Provisions (‘TP’) and accounting basis. This is then compared to the sponsor’s market cap to illustrate the sponsor variance in a selection of pension schemes
  • Market Overview: we look at the various fiscal and monetary policy measures being taken in the UK, Europe and the US to soften the economic fallout from the outbreak of COVID-19
  • Pension Scheme Trading Activity: March has been a very busy month in LDI with very high volatility driving changes in funding and asset allocation ratios. This was coupled by very difficult trading and liquidity conditions whilst the whole market was trying to acclimatise to working from home
  • Pension Scheme News: DB pension deficits grew by £120bn over Q1-2020 as COVID-19 driven disruptions delivered schemes a “triple whammy”, and TPR released guidance for trustees to deal pragmatically with sponsor requests for contribution deferrals / holidays
  • NWM Insights: We include our latest article on where are you in your ESG investing journey and practical tips to consider

This is Non-Independent Research, as defined by the Financial Conduct Authority. Not intended for Retail Client distribution. This material should be regarded as a marketing communication and may have been produced in conjunction with the NatWest Markets Plc trading desks that trade as principal in the instruments mentioned herein. All data is accurate as of the report date, unless otherwise specified.


This communication has been prepared by NatWest Markets Plc, and should be regarded as a Marketing Communication, for which the relevant competent authority is the UK Financial Conduct Authority.   Please follow the link for the following information   

  • MAR Disclaimer
  • Conflicts of Interest statement
  • Glossary of definitions
  • Historic Trade ideas log

Note that the text above is subject to the disclaimer(s) accessible if you Click Here
Pension Solutions
Andrew Kenyon
Insurance Solutions
+44 2070859747
Krishna Mepani
Analyst, Insurance and Pension C&A
+44 20 7085 4294
Simon Clark
+44 20 7085 2430
Harriet Dunscombe
UK Flow Rates
+44 207 085 3258


If you wish to discuss the content of this email further, please reach out to your usual contact. Reminder, clients of Natwest Markets NV should reach out to their relevant NV contact.

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