How to spend your surplus - with Emma Cameron, head of investment consultancy at Hymans Robertson

Emma is a Partner at Hymans Robertson and joined the firm in 2012, having previously worked at Deloitte and Mercer. In her current role Emma advises trustees of DB pensions schemes on a full array of investment issues.  Alongside her client commitments Emma is Chair of the firm’s Investment Committee and is a member of Partnership Council, one of the firm’s governing groups.

This episode’s guest is Emma Cameron, partner and head of investment consultancy at Hymans Robertson. Charlotte and Emma discuss the stability of closed defined benefit (DB) schemes’ strong funding positions and how surpluses will shape future strategic and investment decisions.

Unimaginable only a few years ago, surpluses present trustees with new questions about how these should be spent and invested. Emma stresses the importance of planning early to avoid contention and ensure value can be shared wisely between members and sponsors.

Once funding positions have been stabilised, trustees and companies have the option to invest the remaining surpluses more productively – in equities, infrastructure or sustainable finance – including natural assets such timber.

Emma highlights that alongside DB reform, there is a growing need to address major gaps in provision for the self-employed, who often fall outside the traditional pension system. She calls for innovation and bold policy thinking to engage this under-served group, suggesting now may be a once-in-a-generation opportunity to reshape the entire retirement landscape.

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Key points:

• DB scheme surpluses are here to stay due to de-risking and hedging

• Who benefits from the surplus?

• Surpluses offer opportunities for higher-risk, higher-return investments

• A “three-bucket” investment approach: core liabilities, risk buffer, and productive surplus

• Shift in trustee mindset: from de-risking to potential safe re-risking

• Surpluses may drive renewed interest in run-on strategies over buyout

• Potential for sustainable and UK-focused investment with surplus capital

• Government is encouraging schemes to support UK growth through pensions

• Industry must innovate across DB, DC, CDC — and tackle gaps for the self-employed • The self-employed are often excluded from pension frameworks and need tailored solutions

• A pivotal “crossroads” moment — a chance to rethink and reform pensions for future generations

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ABOUT THE HOST:

Charlotte Moore is an award-winning journalist and co-founder of Moore Squared Communications. She has spent almost two decades writing about how the UK’s largest investment organisations allocate their capital for a number of different specialist magazines including Professional Pensions, IPE and MandateWire. She started this podcast to increase understanding of how and why the UK’s £3 trillion pensions industry invests its members’ capital to provide the best possible retirement.

🔗 https://lotsmoore.co.uk/

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