Ogier in Guernsey advises Portunes Pension Capital on landmark UK capital-backed pension transaction

Ogier in Guernsey has advised Portunes Pension Capital on the successful completion of a capital-backed investment (CBI) transaction with the James Neill Pension Plan, represented by professional trustee firm Aretas Trustees. The transaction is only the second of its kind to complete in the UK pensions market and highlights the growing momentum behind capital-backed solutions. 

The Ogier team was led by partner Bryon Rees and senior associate James Dickinson, advising Portunes on all Guernsey law and regulatory aspects of the transaction while supporting Portunes' lead counsel, Fieldfisher. 

Building on Portunes’ pioneering 2020 “Nova” capital-backed journey plan (CBJP) transaction, this latest deal represents a step forward in the evolution of capital-backed solutions for defined benefit pension schemes. These structures are designed to provide pension schemes with greater certainty over funding outcomes, while retaining flexibility and enhancing investment efficiency. 

CBJs and CBIs are emerging forms of pension risk management, enabling schemes to access third-party capital to reduce volatility and support long-term funding objectives. Under the structure, the scheme and Portunes invest alongside one another over a defined period, with the scheme benefiting from a senior-ranking payout up to an agreed return at maturity, underpinned by Portunes’ capital commitment. 

The transaction was tailored to meet the James Neill Pension Plan’s specific funding and investment objectives, while preserving flexibility within its existing investment strategy, including: 

• preserving the scheme’s existing illiquid asset portfolio, avoiding the need for potentially value-destructive disposals 
• supporting the scheme's liability driven investment (LDI) strategy through a structure designed to integrate with existing liability hedging arrangements 

“Congratulations to everyone involved. We are pleased to have advised Portunes and to have helped deliver this transaction for them and the James Neill Pension Plan,” said Bryon Rees, partner in Ogier’s Corporate team.  

“The transaction demonstrates the effectiveness of capital-backed solutions and reinforces Guernsey’s position as a leading jurisdiction for these structures, pension liability solutions and for innovation generally." 

Antony Miller, Chair and Professional Trustee at Aretas Trustees, said: 

“We are pleased to have completed this landmark transaction on behalf of the James Neill Pension Plan. Capital-backed transactions come in different guises and represent an exciting development in the pensions landscape, offering schemes a compelling blend of downside protection and upside potential. This transaction demonstrates how innovative structuring can deliver tangible benefits for members, particularly through retaining exposure to existing illiquid assets and integrating seamlessly with an LDI framework.” 

The James Neill name remains well known through its connection with Spears & Jackson, one of Britain’s leading gardening tools brands, reflecting the Scheme’s long-standing industrial heritage. 

Portunes and the Trustee were supported by a multidisciplinary team of advisers. Fieldfisher acted as legal adviser to Portunes alongside Ogier. Burges Salmon acted as legal adviser to the Trustee, Redington (Gallagher Re) as investment adviser to the Trustee and Schroders as investment manager. Semper Fiduciary Limited acts as the Guernsey corporate service provider for the structure advising on its establishment and ongoing administration. 

Contact our team to find out more.