Superfunds and surpluses – with Darren Masters, professional trustee at Capital Cranfield

Описание: In the second episode of EY’s Re-imagining Pensions Podcast, Paul Kitson – head of UK pensions consulting at EY and Charlotte Moore – co-founder of Moore Squared Communications talk to Darren Masters, independent trustee at Capital Cranfield about superfunds and DB surpluses.

We start with a recap of the changes the pensions scheme bill will make and observe how the original concept for super funds now feels like it is from a different era – one where pension funds were distressed and needed help to get to buyout.

With new super funds focusing instead on run-on, this seems like a move towards consolidation. This was the original idea behind super funds and Darren explains what else would need to happen in the future to move us towards a realistic consolidation model for DB schemes.

While everyone – the government, trustees and finance directors – would like to spend pension surpluses, no-one seems to know how.

Darren explains how negative accountancy implications are one of the issues holding back people. The best option would be to explain the overall benefits of accessing the surplus, even if it has a negative impact on the company accounts.

We grant Darren a magic wand to change one thing in the UK pensions landscape and he has GMP equalisation in his sights saying all this has created is a multi-billion business for consultants will minimal upside for scheme members.

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About the guest:

John has a wide range of pension experience including having been involved in looking after the Stagecoach Group Pension Scheme in various roles for nearly 25 years, in which he is currently serving as Chair of Trustees. He was also a long serving Trustee of the multi-employer Railway Pension Scheme from 2009 until 2020. He was instrumental in initiating changes in the 2021 regulations acknowledging the different funding treatment possible for open schemes, and is known for creative and challenging thinking. A member of the Institute of Chartered Accountants (Scotland) Tax Board, his early training was as an international tax adviser. Over his corporate career he has benefited from extensive experiences in business appraisal and valuations for corporate acquisitions and disposals, and this has influenced his approach to pension scheme investment. Passionate about delivering fair pension outcomes and a believer in developing a pension system that is symbiotic with the broader economy.

About the hosts:

Paul is a Partner and UK Head of Pensions Consulting at EY. He leads a team focused on advising pension funds and their corporate sponsors across the UK. Paul and has worked with some of the largest defined benefit and defined contribution pension funds in the UK including the British Airways Pension Schemes and the BBC.

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.

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🎧 EPISODE CHAPTERS:
00:00 Introduction
00:18 Welcome to the Professional Investment Podcast
00:45 EY Guest Introduction
01:20 The Current Investment Landscape
03:05 Market Volatility and Economic Pressures
05:30 Institutional Investor Sentiment in 2026
07:50 Regulatory Environment and Policy Shifts
10:15 Private Markets vs Public Markets
12:40 ESG and Responsible Investment Trends
15:05 Risk Management in Uncertain Conditions
17:30 Pension Funds and Long Term Allocation Strategy
19:55 Liquidity Considerations for Institutional Portfolios
22:10 The Role of Alternative Assets
24:30 UK Market Outlook
26:45 Strategic Positioning for the Year Ahead
28:50 Key Takeaways for Professional Investors
29:40 Closing Remarks