Defending pensions

Faced with a deficit of more than £3.6 billion, BAE Systems' pension fund was forced to consider a variety of innovative solutions to plug the gap between its assets and liabilities. One of them was a sale and lease-back plan with the scheme's sponsor. Mark Pengelly reports


Pension funds' hunt for assets that better match their long-term liabilities has taken a new turn in the UK. Property is becoming the asset class of choice, and several innovative transactions have closed in the past few months. In January, British Airways' pension fund entered into a £445 million sale and lease-back deal with UK supermarket group Tesco. The transaction will generate 20 years of index-linked rental cashflows for the pension fund, with an option to terminate the deal after 10

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here