ICI Pension Fund - Strong governance enables the Fund to respond quickly to market conditions
04 August 2016
The ICI Pension Fund has completed its ninth buy-in with a £750m post-Brexit deal with Legal & General. This brings the total liabilities insured to £7bn out of the Fund’s total liabilities of around £11bn.
The Fund's strong governance structure and past experience of buy-ins enabled it to respond quickly to the favourable market conditions arising immediately after the EU referendum. This reduced the estimated cost of the transaction by around £10m.
Michael Chatterton, the director who represents LawDeb Pension Trustees as the independent professional trustee on the Fund's board commented:
Increased market volatility is likely to give those pension funds that can respond quickly the opportunity to secure buy-ins on favourable terms. The strong governance arrangements within the ICI Pension Fund enabled this transaction to be signed within eight working days of the referendum vote.