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One of Cardano’s first fiduciary management clients announces buy-out; Asda Group Pension Scheme with Rothesay Life

Cardano, the leading pensions investment specialist, has helped one of its first fiduciary management clients to complete a £3.8 billion full scheme buy-in with Rothesay Life. The buy-in has been secured in anticipation of a full buy-out of the Scheme in the next 20 to 24 months.

Cardano was appointed by the Trustees of the Asda Group Pension Scheme as a fiduciary manager and investment adviser in 2009. Over the last decade, through careful management of risk, and use of a wide investment toolkit, the fiduciary management mandate has achieved its investment objective of delivering a steady improvement in the funding level.

Once the Trustees decided to pursue a buy-out, Cardano were instrumental in transitioning the portfolio to match the insurer’s pricing basis, eliminating market risk whilst the final details of the transaction were being agreed.

Kerrin Rosenberg, CEO of Cardano UK, said: “The Asda Group Pension Scheme was one of the UK’s early adopters of a fiduciary management approach. Thanks to a decade of careful investment risk and portfolio management, as well as the additional support provided by Asda and Walmart, the Scheme has been able to complete its journey with an excellent outcome for all parties. It has been a privilege to work with the Trustees and to have played a part in helping the members secure their benefits.”

Richard Phillips, Chairman of the Trustee Board of the Asda Group Pension Scheme, said: “Cardano have been an excellent partner for the Trustees over the last decade, providing us with careful risk management and delivering on the mandate they were given. They showed flexibility when we collectively agreed to pursue the buy-out, and have continued to add value, right up until the point of transferring assets to Rothesay Life. I would like to thank them for their support.”