Schroders Solutions appointed OCIO to Kier Group’s £1.2 billion UK Pension Schemes
This appointment confirms Schroders Solutions’ position as a trusted OCIO partner to defined benefit pension schemes.
Schroders Solutions is today announcing it has been appointed as the outsourced chief investment officer (OCIO) to Kier Group Plc’s UK pensions schemes, totalling £1.2 billion in assets incorporating its award-winning[1] LDI capabilities. Kier is a leading UK infrastructure services, construction, and property group.
The mandate covers five pension schemes and as OCIO, Schroders Solutions will be responsible for assisting the trustees in applying a common investment strategy framework and streamlining the operational running of the schemes.
Liquidity management is a crucial part of the Schemes’ governance and investment management. Following an open and competitive tender process, Schroders Solutions was recognised for its successful navigation of the gilts crisis last year and its in-house liquidity management processes and LDI capability as adding significant value to trustees.
Schroders Solutions manages in excess of £100 billion in OCIO partnerships[2].
Neil Walton, Head of OCIO and Client Specialist Solutions, Schroders, said:
“This appointment confirms Schroders Solutions’ position as a trusted partner to defined benefit pension schemes. The move to OCIO models continues to accelerate and a wide variety of clients, including Kier, are seeing the benefits. With institutional investors facing higher demands we are able to provide greater resource, improved value and robustness. We are grateful for the trust placed in us and look forward to working closely with the Trustees to help them meet their investment objectives.”
Mark Cliff, Chair of the Trustee Board, Vidett, said:
“Following a competitive selection process, we are pleased to have appointed Schroders Solutions to deliver maximum value across these five pension schemes under an OCIO model. We look forward to getting started.”
Anne-Marie Gillon, Director, IC Select, said:
”There has been a clear increase in fiduciary management and OCIO models to help trustees navigate a more complex investment and regulatory environment. We were glad to have helped the trustees find the right partner for them through our independent selection and appointment process. With Schroders Solutions in place to take on investment responsibilities, the trustees have added security and capacity to focus on more strategic priorities.”
[1] Winners 2023 // European Pensions Awards
[2] Outsourced CIO: is it more compelling than ever for institutional investors? (schroders.com)