The Tioxide Pension Fund has agreed a £430m (€487m) buy-in deal with Legal & General Assurance Society Limited (L&G) with the transaction securing the benefits of around 2,700 retirees and deferred members.
The sponsoring company, is a global chemical company. The fund is an existing L&G client, with Legal & General Investment Management (LGIM) having managed a proportion of the scheme’s assets since 1995.
L&G was able to offer a tailored price lock solution that provided price certainty to the trustee during a period of high market volatility while the terms of the buy-in were being agreed, it was disclosed.
The trustee and sponsor appointed Aon as their specialist adviser for the transaction while legal advice was provided to the trustee by Addleshaw Goddard. Clifford Chance provided legal advice to L&G.
Sally Roberts, chair of trustees, said: “We are very happy to have secured our members’ benefits fully through this transaction and achieve our long-term objective for the fund. We appointed Aon as our specialist adviser for the transaction and we are grateful for the support of them and our advisers and the collaboration between the trustee and company to enable us to achieve this positive outcome for the fund and our members.”
Charlotte Quarmby, associate partner at Aon, said: “After careful consideration of a number of different factors, the trustee and sponsor were able to lock into the position with Legal & General and – just as work was being done to finalise the transaction – to weather the storm of the most volatile market conditions of recent years.”
Smart Pension launches three new fully sustainable investment strategies
Smart Pension, a workplace pension provider, has launched three new fully sustainable lifestyle strategies with different growth fund options: the Smart Sustainable Growth Core Fund, the Smart Sustainable Growth Fund (the Smart Pension default fund) and the Smart Sustainable Growth Plus Fund.
All three growth funds fully invest in funds that positively contribute to the planet and society, including investing in areas such as renewable energy projects, clean water and healthcare, the provider said, adding that it is the first UK pension provider to offer customers a range of lifestyle strategies that are all fully sustainable, including the default fund.
All the components that Smart Pension now uses across the three growth funds are classified as article 8 or higher through the Sustainable Finance Disclosure Regulation, a technical standard introduced last year by the European Commission.
Smart Pension believes these new options are aligned to member views, having received feedback from members and employers. A recent survey of Smart Pension members showed that they have differing views on how sustainable they want their pension investments to be and how much they are willing to pay to be sustainable.
Over three-quarters of respondents believe it is important that pension savings are invested in a way that specifically benefits people and the planet (77.8%). Almost a third of respondents wanted to exclude companies and products which could cause harm to the environment or people.
Paul Bucksey, chief investment officer at Smart Pension, said: “We have listened to our members and our employers and we are focused on giving them more choice over where their money is invested. They can now align their own values with their investments and make a positive impact on society and the planet, with the intention of not compromising on returns. We want to help our members secure long-term financial growth and a safer, healthier world in which they can retire.”
Pensions Management Institute partners with Phoenix CIS
The Pensions Management Institute (PMI) has appointed Phoenix CIS as its academy partner to provide content on investment-only platforms to its members.
Phoenix CIS provides flexible one-to-one support to ensure pension schemes are equipped to identify, create, and maintain tailored investment solutions. The partnership will help PMI members improve their understanding of how investment-only platforms can benefit pension schemes.
The partnership will give PMI members access to the latest insights and information on investment-only platforms, it was announced. PMI members will also be able to access Phoenix CIS’s content through a range of distribution channels, including its magazine ‘Pensions Aspects’, email newsletters, and its dedicated academy partners web area.
Gareth Tancred, PMI’s chief executive officer, said: “Investment-only platforms are an increasingly valuable tool for pension scheme management. As 2023 brings about changes to the pensions industry, many schemes may benefit from having a greater comprehension and understanding of how platforms can support them to achieve their investment objectives. As experts in specialist investment servicing, Phoenix CIS is the ideal choice to be our academy partner on this topic and we look forward to working with them.”