On the go: The Sappi UK Pension Scheme has completed a full £150mn buy-in with Phoenix Group subsidiary Standard Life.
The transaction secures the benefits of all 1,300 scheme members and reduces the risks associated with the pension scheme’s liabilities.
Mike Roberts, director of PAN Trustees and acting trustee of the scheme, said: “It is a great result to be able to secure member benefits with Standard Life, which marks an important milestone in the scheme’s journey plan.”
Jani Singh, of PwC, added: “To be able to execute the full scheme buy-in transaction in the current uncertain market conditions is a positive outcome.
“We took a solutions-focused approach, which included efficiently disposing of the scheme’s illiquid assets. As schemes reach their endgame destination quicker than they anticipate, we expect features such as illiquid assets and capturing market volatility to become more common.”
PwC acted as the lead adviser for the transaction, with legal advice provided by Squire Patton Boggs, and administration and project support from Deloitte.
According to the scheme’s statement of investment principles, prior to the buy-in the scheme’s strategic asset allocation stood at 87.5 per cent matching portfolio — consisting of liability-driven investments and synthetic credit — and 12.5 per cent growth portfolio.
This article originally appeared on MandateWire.com
