Insurance specialist Aegon UK and UBS Global Asset Management, a provider of investment solutions for UK institutional pension fund clients, have teamed up to offer a service designed specifically to help companies deal with their pension fund liabilities.
The joint proposition will target UK schemes with liabilities in excess of GBP300 million and aims to serve those seeking a tailored solution to their pension strategy opposed to a straight investment or pension buy-out proposition.
This joint venture offering will be known as the UBS Aegon affordable risk transfer solution. It will provide clients with an integrated solution from both companies; combining insurance, administration, asset management and risk management capabilities.
Compared to traditional buy-out, it defers the buy-out of more expensive liability tranches and creates the opportunity to generate returns. This increases the probability of lower overall costs and makes risk transfer more affordable for partially funded plans.
UBS Global Asset Management’s head of global investment solutions, Brian Singer, said: We are delighted to be entering this rapidly expanding marketplace with Aegon UK. Together we can provide integrated solutions built from proven capabilities and customized to our clients’ needs. This initiative brings longevity risk management into the toolkit of the asset manager and perfectly complements our dynamically-managed investment solutions for pension plans.