REG - Aberdeen Group PLC - Aberdeen takes on Stagecoach Group Pension Scheme

AberdeenAnnouncement

04/12/2025 08:30

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RNS Number : 2475K  Aberdeen Group PLC  04 December 2025

Aberdeen Group plc ('Aberdeen')

Aberdeen to take on Stagecoach Group Pension Scheme

 

·    Over 22,000 pension scheme members to benefit from increases in
pensions and better inflation protection

·    Scheme's strong funding position allows Aberdeen to take over from
Stagecoach as scheme sponsor and adds c.£1.2bn of assets under management
("AUM")

·    Strong alignment between Aberdeen and trustee supports investment in
productive assets, and provides opportunity to grow surplus to increase
members' benefits, with a minority share of surplus to Aberdeen

·    Transaction follows Aberdeen's announcement earlier this year to run
on its own defined benefit ("DB") pension scheme whilst unlocking the value of
its surplus

 

Aberdeen has agreed to become the sponsoring employer of the Stagecoach Group
Pension Scheme (SGPS), a move that is set to bring significant benefits to its
22,000 members. The scheme, which benefits from a strong surplus position,
will continue to 'run on'. This model ensures long-term security for the
scheme, will support better inflation protection for members and includes an
additional initial pension increase of c.1.5% for all members. Taken together,
these represent an immediate allocation of over £50m of the scheme's surplus
for members. The ability to invest in productive assets which the arrangement
provides, also offers the prospect of further pension increases for scheme
members in the future.

Under the arrangement, Aberdeen will take on responsibility for the scheme's
funding as well as the management of the scheme's £1.2bn of assets. Aberdeen
will receive a minority share of any future distributed surplus with the
majority earmarked for members, all subject to robust guardrails that ensure
the scheme's financial security. Given the scheme's strong funding position,
this will have no significant impact on Aberdeen's capital position.

This innovative transaction supports the Stagecoach Group's objective of
simplifying its business through settling its arrangements with the SGPS and
ensures the interests of pension scheme members and Aberdeen are closely
aligned.

It follows Aberdeen's decision earlier this year to run on its £2.6bn DB
pension scheme, with surplus unlocked for the benefit of Aberdeen and the
scheme's members. The SGPS transaction also highlights Aberdeen's pensions
expertise at a time when an increasing number of DB pension schemes are
considering their future plans.

Benefits for SGPS members include:

·    Better ongoing protection against inflation through higher
inflationary caps

·    An additional initial uplift of 1.5% to pensions

·    Potential for further increases linked to the financial performance
of the scheme

 

 

Strengthening Aberdeen's investment platform

The deal leverages Aberdeen's pension investment solutions and private markets
expertise, with potential for infrastructure, private credit and real estate
investment. It also aligns with broader efforts championed by the UK
Government to invest pension assets more productively. With over £200bn
managed globally for pension and insurance clients, Aberdeen is
well-positioned to deliver long-term value through diversified investments.

Aberdeen Group CEO Jason Windsor said:

"This is a landmark agreement that will deliver significant value to
Stagecoach's scheme members, and to Aberdeen.

The scheme's strong funding position allows Aberdeen to take on the
responsibility for managing the fund and provides the opportunity to enhance
member benefits by investing in productive assets.

The agreement, which aligns with the UK's goal of making pension capital work
harder for the economy, brings £1.2bn in new assets under management and
opens up new investment opportunities.

We believe in the run-on model for well-funded schemes, having already taken
this approach for our own scheme."

Trustee Chair for SGPS, John Hamilton commented:

"Our objective was to consider what would provide the best pension outcomes
for the scheme members.

With a significant starting surplus in the scheme built up over many years and
prospects for further sustained growth in the fund, our goal was to run-on the
pension scheme to provide better inflation protection and higher pensions for
our members using the scheme assets under secure funding arrangements.

The trustee had a natural meeting of minds with the team at Aberdeen. Their
experience of achieving similar outcomes for their own scheme, a belief in the
need for growth and productive assets, and the recognised strength of
Aberdeen's pensions and investment teams, all meant we were able to develop an
innovative solution to deliver improved pension outcomes for our members."

Stagecoach Group Chief Financial Officer, Bruce Dingwall, said:

"We have been pleased to support the Trustee in assessing the best option for
the scheme, having reached a strong funding position.  We are delighted that
these arrangements allow members to benefit from a strong sponsor and an
expectation of further benefit improvements over time.  For Stagecoach, this
transaction gives us a clean break from the large defined benefit pension
scheme, which supports our objective of simplifying our business."

4 December 2025

Enquiries:

 Media

 Duncan Young                                                          Iain Dey
 External Communications Director
Teneo (Financial Public Relations)
 Duncan.Young@aberdeenplc.com (mailto:Duncan.Young@aberdeenplc.com)    Iain.Dey@Teneo.com (mailto:Iain.Dey@Teneo.com)
 0792 086 8865
0797 629 5906

 Institutional equity investors and analysts

 Duncan Heath

Investor Relations Director
 Duncan.Heath@aberdeenplc.com (mailto:Duncan.Heath@aberdeenplc.com)

0207 156 2495 / 0788 410 9285

Notes to editors:

About Aberdeen Group plc:

Aberdeen is a leading Wealth & Investments group, working to help millions
of customers and clients turn their financial goals into reality. Our purpose
is to enable our clients to be better investors, and we are structured around
three core businesses:

·    interactive investor - the UK's second largest direct-to-consumer
investment platform enabling c.500,000 customers to plan, save and invest in
the way that works for them.

·    Adviser - provides financial planning solutions and technology for UK
financial advisers, enabling them to deliver value for their clients.

·    Investments - a specialist asset manager leveraging scale and
expertise across public and private markets to capitalise on the key themes
shaping global markets.

 

As at 30 September 2025, Aberdeen managed and administered £542bn of client
and customer assets.

LEI number of Aberdeen Group plc: 0TMBS544NMO7GLCE7H90

www.aberdeenplc.com (http://www.aberdeenplc.com)

 

 

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