Around two-thirds of trustees (64 per cent) have taken steps to prepare for Brexit, research by Hymans Robertson has found.

The survey comes in the wake of news that the new deadline for the UK leaving the European Union has been extended to 31 October.

Over a third of respondents to the survey (37 per cent) have reviewed their employer covenant in light of Brexit, and 29 per cent have considered their contingency plans.

Many trustees have also taken protective measures in anticipation of market instability; almost a quarter (23 per cent) of trustees have increased their interest rate hedging in anticipation of a fall in yields and 12 per cent have decreased their exposure to currencies in anticipation of sterling falling.

However, despite many taking precautions, 36 per cent of trustees said that they have done not done anything to prepare for Brexit.

Commenting, Hymans Robertson partner and head of DB trustee consulting, Susan McIlvogue said: “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.”

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