UK - AEGON and UBS Global Asset Management have joined forces in the UK to launch a buy-out solution aimed at schemes with liabilities in excess of £300m.
The venture will be named UBS AEGON Affordable Risk Transfer Solution. UBS claimed its had discussed the project with a number of clients and it is expected to be marketed broadly in due course.
The service will target pension funds with liabilities in excess of £300m that have been looking for a tailored solution to their pension strategy instead of a straight investment or pension buy-out proposition.
Aegon said compared to a traditional buy-out, it would defer the buy-out of more expensive liability tranches, create the opportunity to generate returns and make risk transfer more affordable for partially funded plans.
AEGON UK chief executive Otto Thoresen said: “Linking with UBS Global Asset Management will enable us to provide a bespoke bulk annuity service to a different segment of the corporate market from the SME market, where we have made a strong start.”
UBS Global Asset Management’s head of global investment solutions Brian Singer added: “This initiative brings longevity risk management into the toolkit of the asset manager and perfectly complements our dynamically-managed investment solutions for pension plans.”
Mark Evans has been appointed as a director at Independent Trustee Services (ITS) to lead trustee appointments in London.
The Pension Protection Fund (PPF) is consulting on changes to the actuarial assumptions it uses in valuations in a bid to better reflect the bulk annuity market, with schemes set to move into surplus on aggregate.
Private sector defined benefit (DB) schemes were 96.3% funded on a Pension Protection Fund (PPF) compensation basis at the end of July, according to the lifeboat fund's monthly index.
Conduent has completed the sale of its actuarial and human resource consulting business to private equity investor, H.I.G. Capital.