Brandsby Agricultural Trading Association secures £13m buyout with L&G

The Brandsby Agrictultural Trading Association Employees' Superannuation Pension Scheme has completed a £13m buyout deal with Legal & General (L&G).

The transaction secures the benefits of all 120 members of the scheme, which has been a client of the L&G Group since appointing L&G Investment Management (LGIM) as its fiduciary manager in 2018.

This existing relationship saw the scheme work “closely” with L&G to define the ultimate objective of a buyout, and in turn gave trustees “certainty over the terms of the bulk annuity purchase in spite of turbulent financial markets”.

The scheme trustees were also advised throughout the transaction by Mercer and Hill Dickinson.

“Crucial to the success of this transaction," added LGIM head of fiduciary duty, Lisa Purdy, "was the combination of having the governance structure in place to manage and opportunistically de-risk; alongside the ability to monitor live transactable buyout pricing and price lock the portfolio quickly and efficiently."

Mercer partner Martyn Phillips said the transaction was proof that “well-managed and prepared smaller schemes” can complete trades, even against "a backdrop of significantly larger transactions and despite challenging market conditions".

Phillips also noted that despite ongoing market volatility, the scheme had actually secured the bulk annuity earlier than expected based on their “flight-path to reach full buyout funding”.

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