Schroders Solutions Guides Vector Pension Scheme to £114 Million Bulk Annuity Buy-In

Schroders Solutions Guides Vector Pension Scheme to £114 Million Bulk Annuity Buy-In

(IN BRIEF) Vector Pension Scheme, a client of Schroders Solutions, has completed a £114 million bulk annuity buy-in with Standard Life, securing retirement benefits for its 1,800 members. Schroders Solutions, with its vast global capability, collaborated closely with Vector Pension Scheme trustees, providing strategic advice and efficient implementation to achieve the buyout with minimal sponsor contributions. The process, advised by XPS and completed in November 2023, utilized Schroders Solutions’ in-house segregated LDI to align assets and minimize transaction costs, ultimately delivering optimal outcomes for scheme members.

(PRESS RELEASE) LONDON, 22-Feb-2024 — /EuropaWire/ — Schroders (LON: SDR), a British multinational asset management company, announces that Vector Pension Scheme, a valued client of Schroders Solutions, has successfully finalized a £114 million bulk annuity buy-in with Standard Life, safeguarding the retirement benefits for its 1,800 members. With a longstanding partnership spanning over 15 years, Schroders Solutions, boasting a global capability of £212.1 billion, collaborated closely with the trustees of Vector Pension Scheme, providing strategic advice and efficient implementation to navigate the journey towards buyout with minimal sponsor contributions. Leveraging Schroders Solutions’ in-house segregated LDI, the team aligned the scheme’s assets with a price lock, facilitating the seamless transfer of gilts in specie, thus reducing transaction costs and enhancing overall efficiency. The comprehensive buy-in process was advised by XPS and concluded in November 2023.

Gerard Francis, Head of UK Design and Strategic Risk at Schroders Solutions, remarked: “We have an excellent relationship with Vector and we are pleased to have supported the Scheme to endgame on behalf of its members. We monitored buyout funding levels, worked closely with the client and insurer to manage the illiquid assets, ensuring the scheme was well-positioned to act quickly and transact at the opportune time. The groundwork had been done which saved the client transaction costs and ultimately delivered benefits for its members.”

For further information, please contact:

Andy Pearce, Head of Media Relations
+44 20 7658 2203
Andy.Pearce@Schroders.com

Rachael Dowers, PR Manager
+44 207 658 2086
Rachael.Dowers@Schroders.com

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Schroders Solutions

Schroders Solutions is a £212.1 billion global capability with employees in the UK, US, Singapore, and Germany. Our dedicated solutions experts provide investment and advisory services to public and corporate pension schemes, official institutions, insurance companies, individual investors, intermediaries and wealth providers worldwide. Solving investment problems is integral to what we do. We draw on our knowledge and experience as a global provider to build bespoke investment solutions and strategies. We partner with our clients to understand their investment challenges and construct investment portfolios that deliver their desired financial outcomes. Our consultative approach draws on both Schroders’ investment skills and those of the wider investment industry. Schroders Solutions offers Fiduciary Management, Outsourced CIO, liability, duration and cashflow driven investing, as well as derivatives-based growth strategies. Our solutions are accessible to clients of all sizes through a flexible approach to implementation, sensitive to their needs and objectives.

Source: Schroders as of 30 June 2023.

Schroders plc

Schroders is a global investment management firm with £726.1 billion (€846.1 billion; $923.1 billion) assets under management, as at 30 June 2023. Schroders continues to deliver strong financial results in ever challenging market conditions, with a market capitalisation of circa £7 billion, as at 30 June 2023, and over 6,100 employees across 38 locations. Established in 1804, the founding family remains a core shareholder, holding approximately 44% of Schroders’ shares.

Schroders has benefited from a diverse business model by geography, asset class and client type. It offers innovative products and solutions across four core growing business areas; asset management, solutions, Schroders Capital (private assets) and wealth management. Clients include insurance companies, pension schemes, sovereign wealth funds, high net worth individuals and foundations. Schroders also manages assets for end clients as part of its relationships with distributors, financial advisers and online platforms.

Schroders aims to provide excellent investment performance to clients through active management. It also channels capital into sustainable and durable businesses to accelerate positive change in the world. Schroders’ business philosophy is based on the belief that if we deliver for clients, we will deliver for our shareholders and other stakeholders.

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SOURCE: Schroders plc