UKGI optimises tax payer value through realisation of pension assets
In 2012, as part of the preparations for the privatisation of Royal Mail, approximately £28 billion of pension assets were transferred from the Royal Mail Pension Plan to the government. UKGI manages the government-owned company that holds these assets (“BIS Co”) and for overseeing their realisation, which may include potential sales.
UKGI’s responsibilities include:
- Asset optimisation – implementing a strong governance and reporting framework, analysing and reporting on portfolio performance and risk, making sure that external investment managers are held to account.
- Transaction advice and execution – UKGI has led strategic negotiations and sales including the sale of a substantial property portfolio, private equity fund interests, and considers future sales; and
Of the pension assets transferred to government, the liquid assets were realised in the first few months following their transfer. This resulted in a net gain to the taxpayer. The rest of the portfolio is in the process of being realised over a longer timeframe to optimise value for money.