Almost two out of three trustees are putting in place measures to prepare their scheme for Brexit, despite the ongoing uncertainty.
This survey, by Hymans Robertson, found trustees were taking a variety of steps to protect schemes from any potential Brexit fallout.
Over a third of respondents to the survey (37 per cent) had reviewed their employer covenant in light of Brexit, and 29 per cent had considered their contingency plans.
In addition a further 23 per of trustees had increased interest rate hedging, in anticipation of a fall in yields, while 12 per cent had decreased their exposure to overseas currency, with a view to sterling further falling in value.
However, despite many taking precautions, over a third (36 per cent) of trustees said that they had done not done anything to prepare for Brexit.
Hymans Robertson partner and head of DB trustee consulting Susan McIlvogue says: “It is encouraging that almost two-thirds of trustees are taking proactive steps to manage Brexit related risks.
“It is good to see that many schemes have implemented extra protection against market instability, with almost a quarter increasing their interest rate hedging. With yields falling over 20bps in March this decision is already paying off for those schemes.
“It is also reassuring to see that a significant number of trustees are reviewing contingency plans and the covenant of their sponsoring employer. These are key areas to keep under review until the impact of Brexit becomes clearer.”