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Pension funds invest in gilts (UK government bonds) due to their ability to match liabilities, through their interest rate and inflation linkage. However, insurance companies, which take over the management and payment of members’ pensions during a buyout, traditionally prefer higher-yielding assets.
This shift in investment strategy as schemes go through buyout could affect the demand for future gilt issuance, gilt prices and swap spreads (the difference between the yield on an interest rate swap and a government bond of the same maturity).
Read more in our new ‘Expert Investor’ paper below:

Head of Communications and External Relations
Pension Insurance Corporation plc (‘PIC’), a specialist insurer of defined benefit pension schemes, has completed the buyout of all 36,000 members of the Rolls-Royce UK Pension Fund ('the Fund'), just nine months after signing a £4.3 billion full buy-in with the Trustee. In order to achieve continuity of service, including the Trustee’s digitally focussed approach, PIC has appointed Brightwell as its administration partner. Brightwell has set up a new, dedicated office in Derby and the existing Rolls-Royce administration team, who were already based in Derby, have transferred to Brightwell to ensure that expertise is retained.
Find out more about “PIC completes £4.3 billion Rolls-Royce buyout transition in nine months with Brightwell serving as administration partner”16/07/2026
Brightwell has been recognised as one of the UK’s Best Workplaces for Wellbeing™ 2026, ranking in the top 50 for large companies.
Find out more about “Brightwell recognised as one of the UK’s Best Workplaces for Wellbeing”26/06/2026
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