Unnamed pension scheme completes £103m buyout with Just Group

A US-based engineering company, with operations in the UK and globally, has completed a £103m buyout with Just Group, securing retirement benefits for around 298 deferred members and 25 pensioners.

The transaction was led by K3 Advisory and Cartwright, with legal advice obtained from Shoosmiths.

The buyout is the second transaction undertaken by the scheme, following a £74m pensioner buy-in in August 2020 with Just Group.

The chair of the trustees suggested that the outcome was "particularly pleasing" as both the trustees and company were expecting it to take another seven years to get to full buyout.

"Through Cartwright’s diligent preparation of the member data, proactive and pragmatic investment advice, and relationship with K3, the opportunity was identified and acted on without delay," he stated.

“Thanks to everyone involved we were able to move quickly and secure the right outcome for all our members and the company."

K3 Advisory managing director, Adam Davis, also highlighted the timeline of the deal, which completed in just two months, as "particularly noteworthy" and "an incredible achievement given typical transaction time usually sits at between three and six months".

He continued: "Working closely with our partners, and strong market connections, we saw the market was ideal for transacting.

"With the existing insurance already in place, we were able to move very quickly, snapping up the favourable pricing available and resulting in a great outcome all round.”

Adding to this, Cartwright director of investment consulting, Sam Roberts, stated: “We continuously and closely monitor our clients’ schemes so when an opportunity presents itself, we can seize it by acting quickly.

"This deal was a great example of how things can move very quickly when all parties are aligned, and the preparation has been put in place over the months and years leading up to the transaction.

"When we were appointed in 2018 there were significant issues over the accuracy of the member data and benefits recorded. This took many months to correct, without which the successful transactions in 2020 and 2021 could not have happened.

"This preparation, combined with reacting quickly to other investment opportunities along the way - including de-risking funding level triggers and re-risking in March 2020 - put the trustees in the driving seat to achieve their objective much sooner than they had dared hope.”

Just Group business development manager, Peter Jennings, added: “We take pride in every deal we complete, but there is something particularly satisfying when clients select you to complete further transactions for them.

"It’s a strong signal that they like what you do and trust you to get it right for them.

"So we were delighted the trustees asked us to secure the remaining benefits of the scheme. K3, Cartwright and Just have developed a very efficient method of collaborating that helps us to deliver transactions quickly.”

    Share Story:

Recent Stories

Are current roads into retirement delivering member value?
Laura Blows explores HSBC Master Trust’s recent report, Converting pension pots into incomes, with HSBC Retirement Services CEO, Alison Hatcher.

Savings and finance at retirement
Laura Blows is joined by Claire Felgate, Head of Global Consultant Relations, UK, at BlackRock, to discuss savings and finance at retirement. Please click here for an edited write-up of the video

Making pension engagement enjoyable through technology
Laura Blows speaks to Nick Hall, business development director and Chartered Financial Planner at UK-based Wealth Wizards about the opportunities that technology provides for increasing people’s engagement with pensions and increasing their retirement wealth. Please click here for an edited write-up of the video

Pension portfolios – the role of asset-backed securities
Laura Blows is joined by Royal London Asset Management (RLAM) head of sterling credit research, Martin Foden, and its Senior Fund Manager, Shalin Shah to discuss the role of asset-backed securities (ABS) within pension fund portfolios
Incorporating ESG into fixed income
Laura Blows is joined by TCW head of fixed income ESG, Jamie Franco, to discuss incorporating environmental, social and governance (ESG) strategies into fixed income portfolios