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
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 manager1 with US $4.34
trillion2 under its care. For more information,
visit 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.