REG - PensionBee Group plc - Announcement of US Launch

PensionbeeAnnouncement

18/07/2024 07:00

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RNS Number : 8001W  PensionBee Group plc  18 July 2024

PensionBee Group plc

Incorporated in England and Wales

Registration Number: 13172844

LEI: 2138008663P5FHPGZV74

ISIN: GB00BNDRLN84

 

 

18 July 2024

 

PensionBee Group plc

 

PensionBee Announces US Launch

 

PensionBee Group plc (the 'Company'), a leading online pension provider, today
announces the launch of its business in the United States ('US'), the world's
largest Defined Contribution pension market, representing approximately 80% of
the global total and $22.5 trillion in assets.(1)

 

The Company's wholly-owned US subsidiary, PensionBee Inc. ('PensionBee'), is
now registered with the US Securities and Exchange Commission as an investment
adviser.

 

As announced in May this year, PensionBee entered into a strategic agreement
with a large, US-based global financial institution, which is confirmed to be
State Street Global Advisors ('SSGA'). The Company and SSGA have previously
collaborated on the Company's UK investment offerings where SSGA acts as an
investment manager of certain underlying portfolios.

 

Under this strategic agreement:

 

●    PensionBee will deploy its award-winning online retirement
proposition and proprietary technology, enabling US consumers to easily
consolidate and roll over their 401(k) plans and Individual Retirement
Accounts ('IRAs') into one new PensionBee IRA.(2)

 

●    PensionBee has selected a range of investment portfolios to be
offered to customers that use SSGA's model portfolios, exclusively consisting
of SSGA managed Exchange Traded Funds ('ETFs').

 

●    SSGA will provide meaningful marketing support to PensionBee as the
Company uses its data-led, multi-channel customer acquisition approach to
attract new customers.

 

The Company expects its US business to grow rapidly, aiming to administer
$20-25 billion in US Defined Contribution assets over the next decade, such
that it becomes of equal importance to its growing UK business.

 

In the UK, the Company has over £5 billion of Assets Under Administration
(AUA) on behalf of over 250,000 Invested Customers.(3) The Company will
continue to grow its market share, pursuing a c.2% market share of the £1.2
trillion pensions market over the next 5-10 years and looking to onboard 1
million customers and administer £20-25 billion in AUA. Having achieved
ongoing Adjusted EBITDA profitability at the end of 2023, the Company expects
to be profitable in the UK on an Adjusted EBITDA basis for the full 2024
financial year.

 

Romi Savova, CEO of PensionBee, commented:

 

"In the year of our 10th anniversary since founding PensionBee, we are
delighted to expand the reach of our award-winning customer proposition,
innovative technology platform and unique marketing approach to the US market.

 

Our vision is a world where everyone can enjoy a happy retirement. By entering
the world's largest Defined Contribution pension market, where many consumers
still struggle to prepare adequately for retirement amidst an array of
confusing and opaque investment options, our unique and simple approach to
online retirement savings will resonate.

 

We are excited to work with our long-standing partner, State Street Global
Advisors, to transform the retirement savings market for millions of American
consumers."

 

Yie-Hsin Hung, CEO of State Street Global Advisors, commented:

 

"We are excited to extend our relationship with PensionBee and serve as their
exclusive ETF model provider in the United States. Our collaboration with
PensionBee will enable millions of Americans to have access to model
portfolios built with our ETFs in individual retirement accounts managed by
PensionBee.

 

At State Street Global Advisors, we are committed to collaborating, partnering
and delivering high quality solutions for investors. We are excited to provide
the models and access to some of the world's largest and most liquid SPDR ETFs
to enable PensionBee's clients to save for retirement."

 

Notes:

1. Investment Company Institute, "Release: Quarterly Retirement Market Data"
as at 13 December 2023. Includes the sum of DC Plans and IRAs.

2. A 401k is an employer-sponsored Defined Contribution retirement plan into
which employees can contribute and into which employers may also make matching
contributions. An individual retirement account ('IRA') is a tax-advantaged
retirement savings account into which an individual can contribute either pre-
or post-tax money and which grows on either a tax-deferred or tax-free basis.

3. As of June 2024.

 

Contacts

 

PensionBee

Becky O'Connor

Laura Dunn-Sims

press@pensionbee.com (mailto:press@pensionbee.com)

020 3557 8444

 

About PensionBee

 

PensionBee is a leading online pension provider, making pension management
easy for its customers while they save for a happy retirement. PensionBee
helps its customers combine their old pension pots, make flexible
contributions, invest in line with their goals and values and make
withdrawals. PensionBee offers a range of investment plans, including fossil
fuel free and impact investing options, from some of the world's largest asset
managers.

 

Operating in the vast market of Defined Contribution pension assets,
PensionBee has grown rapidly through its direct-to-consumer marketing
activities, creating a household brand name for the mass market. The Company
has over £5 billion in Assets Under Administration and over 250,000 Invested
Customers as of June 2024. The Company has consistently maintained a Customer
Retention Rate in excess of 95% and an Excellent Trustpilot rating from more
than 10,000 customers, reflecting its commitment to outstanding customer
service.

 

The Company is admitted to trading on the Premium Segment of the London Stock
Exchange's Main Market (LON:PBEE).

 

About State Street Global Advisors

 

For four decades, State Street Global Advisors has served the world's
governments, institutions and financial advisors. With a rigorous, risk-aware
approach built on research, analysis and market-tested experience, it builds
from a breadth of index and active strategies to create cost-effective
solutions. As pioneers in index and ETF investing, it is always inventing new
ways to invest. As a result, it has become the world's fourth-largest asset
manager(1) with US $4.34 trillion(2) under its care. For more information,
visit www.ssga.com (http://www.ssga.com) .

 

Notes:

1. Pensions & Investments Research Center, as of 31 December 2022.

2. This figure is presented as of 31 March 2024 and includes ETF AUM of US
$1,360.89 billion USD of which approximately US $65.87 billion USD is in gold
assets with respect to SPDR products for which State Street Global Advisors
Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD
and State Street Global Advisors are affiliated. Please note all AUM is
unaudited.

 

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