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.”
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