On the go: The John Good & Sons Limited Pension Scheme has agreed a £17m full scheme buy-in with Legal & General, covering the liabilities of more than 80 members.
The shipping agency defined benefit scheme, which has had its assets managed by Legal & General Investment Management since 2003, prepared for the transaction through data cleansing and derisking its assets into the manager’s Buyout Aware funds.
These were specifically designed for schemes approaching buyout, with an investment strategy aligned with factors that affect buyout pricing.
When market conditions moved favourably, the scheme quickly entered a price lock to its assets in the funds. This process ensured that it had the “price certainty it needed to then agree the terms of the buy-in and complete the transaction”, LGIM stated.
John Rutherford, trustee of the John Good & Sons Limited Pension Scheme, said: “We are very pleased to have reached this important stage in our journey to give our members greater security with a well-known and respected company.
“We have received excellent advice, which has enabled us to achieve this in a safe and controlled manner.”
The trustee was advised on the transaction by XPS Pensions Group, with legal advice provided by Arc Pensions Law.
This article originally appeared on MandateWire.com.
