Advising the Largest Full Buy-in in the UK Pensions Industry


Tuesday, Dec 22
|   2 mins

10 second summary 

  • We advised on, and project managed, the in-specie transfer of a £4.7bn buy-in transaction – the largest full buy-in in the UK pensions industry.
  • All transferred assets settled smoothly and the process was completed in line with the agreed transition plan.

What was the problem?

  • Our client wanted to conduct a full plan buy-in of £4.7bn in liabilities in a single transaction.
  • Within a 2-month window of the transaction being agreed, we needed to advise on, and project manage,  the in-specie transfer of the entire asset portfolio to the insurer, including the management of the portfolio against the price lock throughout the preparation period.​

What was our solution?

  • We assisted with the following workstreams: 
    • In specie asset transfers: Worked closely with asset managers/in-house team/ custodian/buy-in advisor to prepare bonds, gilts and derivatives for an in-specie transfer to the insurer, including the novation of hundreds of complex swaps.​
    • Pre transition restructuring: Worked with the in-house team and asset managers to implement the changes required to tidy up the price-lock portfolio ahead of the transaction date and consolidate assets within custody accounts. ​
    • Coupon reconciliation: Carried out weekly coupon income reconciliation to maintain complete alignment with the insurer throughout the price lock period.​
    • Post transition report: Completed full post transition report for submission to plan auditors. This report was accepted by auditors with minimal comments.

What was the outcome?

  • Within a 10-day transaction window, we helped the Plan successfully execute the novation of 237 swaps and transfer of 666 securities to the insurer, and to pay the remaining premium in cash. All transferred assets settled smoothly, and the process was completed in line with the agreed transition plan.

What does this mean for you?

  • We can help advise you on, and project manage, buy-in transactions.

Want to know more?

If you would like further information, please contact:

Patrick O’Sullivan

Patrick O’Sullivan

Head of Investment Consulting

I've spent my career designing and adapting investment strategies of my pension scheme clients to deliver improvements in their funding levels whilst closely managing risk.

Carolyn Schuster-Woldan

Carolyn Schuster-Woldan

Managing Director

I have over twenty years of experience in the pensions industry. I joined Redington in April 2019, and advise clients ranging in size from 100m to £20bn on all elements of investment.

Karen Heaven

Karen Heaven

Managing Director

I am a lead investment consultant to a number of UK DB pension scheme / foundation clients. I joined Redington in 2011 after nearly 9 years in capital markets at an investment bank.

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