ICAEW scheme in fourth buy-in
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The Institute of Chartered Accountants’ Staff Pensions Fund has completed a £58m partial buy-in, insuring the benefits of the 375 members who were not already insured.
The transaction with Pension Insurance Corporation represents around 50% of the fund’s liabilities and is the scheme's fourth. In late 2021, it insured £53m of liabilities with Canada life. The previous two transactions were with Just Retirement in 2014 and with Partnership Life Assurance Company in 2015, before the two insurers merged to form Just Group the following year. The policies remain separate.
“The fund has been on a long-term derisking journey, and we are delighted to have concluded this latest stage with PIC. The team were flexible and constructive in helping us achieve our aims,” said trustee chair Edward Levy, a director at trustee firm Law Debenture.
Joshua Lenz, origination actuary at PIC, said: “We are pleased to have completed this transaction with the trustee, helping increase overall security for the members.”
Joshua Lenz, origination actuary at PIC, said: “We are pleased to have completed this transaction with the trustee, helping increase overall security for the members.”
The scheme's investment consultant and actuary Hymans Robertson led on the transaction. Eversheds Sutherland gave legal advice to the trustee, while PIC was advised by lawyers Addleshaw Goddard.
Prior to this latest buy-in, Insight Investment managed about £67m for the scheme, targeting 50% in credit – split equally between a Secured Finance II fund and a Bonds Plus fund – 34% liability-driven investments and 16% cash. The trustees have been making quarterly disinvestments from the Secured Finance II fund to improve liquidity as the scheme matures. The total assets were worth about £149.3m in March 2024, when the scheme was 106% funded on technical provisions.
The Institute of Chartered Accountants in England and Wales is a professional membership organisation for chartered accountants and students globally.
Prior to this latest buy-in, Insight Investment managed about £67m for the scheme, targeting 50% in credit – split equally between a Secured Finance II fund and a Bonds Plus fund – 34% liability-driven investments and 16% cash. The trustees have been making quarterly disinvestments from the Secured Finance II fund to improve liquidity as the scheme matures. The total assets were worth about £149.3m in March 2024, when the scheme was 106% funded on technical provisions.
The Institute of Chartered Accountants in England and Wales is a professional membership organisation for chartered accountants and students globally.
