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BAE Systems UK Pension Scheme
The BAE Systems UK Pension Scheme, comprising multiple sections including the main scheme and associated funds, serves the aerospace and defence contractor's...
BAE Systems UK Pension Scheme
The BAE Systems UK Pension Scheme, comprising multiple sections including the main scheme and associated funds, serves the aerospace and defence contractor's current and former UK employees. Trustees led by Andrew Gallagher, alongside Brad Greve who serves as Group Finance Director for the sponsor, oversee the governance of the plan. The fund operates BAE Systems Pension Funds Investment Management (BAPFIM), a dedicated in-house investment management arm that gives the trustees direct control over a significant share of the portfolio. BAPFIM manages a multi-asset strategy spanning direct real estate, infrastructure debt, private credit, and hedge fund allocations. The property portfolio is international: a healthcare real estate mandate executed in partnership with Elevation Advisors holds assets in France, Germany, and Spain within the Korian network, while domestic holdings include the Rentplus UK affordable housing program and a mixed-use direct property portfolio concentrated in the United Kingdom. A green project finance loan portfolio rounds out private markets exposure. The fund is a founding investor in the Pensions Infrastructure Platform (PiP) and a member of the UK Sustainable Investment and Finance Association. With estimated assets in the $25B–$30B range, the scheme sits among the largest UK corporate defined benefit plans by liability size. The sponsor, BAE Systems plc, reported a pension surplus in its 2024 annual results, reflecting improved funding levels. In September 2024, Goldman Sachs Asset Management acquired the outsourced business functions of BAPFIM and folded Adam Preston's investment programmes team into its fiduciary management operation, while the trustees retained direct oversight of the remaining portfolio. The scheme's structural differentiator is its balance between in-house direct investing and outsourced fiduciary oversight. Unlike many peers that have fully transferred assets to external fiduciary managers or de-risked entirely, the BAE trustees maintain active exposure to operational real estate and infrastructure through BAPFIM's legacy direct mandates, while the GSAM deal handles liquid and complex portfolio construction for the bulk of the fund. This hybrid model preserves influence over mission-linked assets — such as defence-adjacent infrastructure and social housing — that align with the sponsor's industrial identity.
General information
Firm type
Pension Fund
Location
Region
Europe
Country
United Kingdom
City
Farnborough
Corporate office
Farnborough, England, United Kingdom
Principals
Andrew Gallagher
Chair of Trustees
Brad Greve
Trustee
Adam Preston
Head of Investment Programmes
Sector focus
Frequently asked questions
Who chairs the BAE Systems Pension Scheme trustee board?
Andrew Gallagher serves as Chair of Trustees for the BAE Systems Pension Scheme. Brad Greve, Group Finance Director of BAE Systems plc, also sits on the trustee board as a representative of the sponsoring employer, linking the fund's governance directly to the parent company's financial oversight.
What is BAPFIM and how does it relate to the pension scheme?
BAE Systems Pension Funds Investment Management (BAPFIM) was the in-house investment management arm that handled direct real estate, infrastructure, and alternative asset allocations for the pension scheme. In September 2024, Goldman Sachs Asset Management acquired the fiduciary management team and outsourced business functions of BAPFIM. The trustees retained governance and direct ownership of certain property holdings.
Does the BAE pension scheme hold direct real estate or only fund investments?
The scheme holds direct real estate. Its portfolio includes the Korian healthcare real estate portfolio across France, Germany, and Spain, the Rentplus UK affordable housing program, and a mixed-use direct property portfolio in the United Kingdom. These assets are held alongside a green project finance loan portfolio and traditional fund commitments.
How large is the BAE Systems UK Pension Scheme?
The scheme has not publicly disclosed a precise asset figure. Observers estimate total assets in the $25 billion to $30 billion range, based on the plan's position among the largest UK corporate defined benefit schemes and the sponsor's most recently reported pension surplus in 2024 annual filings.
What is the fund's relationship with Goldman Sachs Asset Management?
In September 2024, Goldman Sachs Asset Management acquired the fiduciary management business of BAPFIM. Adam Preston and the investment programmes team joined GSAM as part of the transaction. The trustees now receive outsourced fiduciary management for liquid and complex portfolio segments while retaining direct oversight of the remaining property portfolio.
Is the BAE pension scheme a member of any infrastructure investment platforms?
Yes. The BAE Systems Pension Scheme was a founding investor in the Pensions Infrastructure Platform (PiP), a UK initiative launched to help pension funds access long-term domestic infrastructure investments. The fund also holds membership in the UK Sustainable Investment and Finance Association (UKSIF).
How is the sponsor covenant for the BAE Systems pension plan assessed?
BAE Systems plc is the sponsoring employer and one of Britain's largest defence contractors. The company reported a pension surplus in its 2024 annual results, signalling a strengthened funding position. The Group Finance Director sits on the trustee board, providing direct governance visibility into the sponsor's financial health.
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