Tesco Pension Trustee partners with Schroders to manage investments for the Tesco Pension Scheme

Tesco Pension Trustee and Schroders have agreed a partnership where Schroders Solutions, part of the Schroders Group, will manage the investments of the closed Tesco Defined Benefit Pension Scheme.

The Tesco Defined Benefit Pension Scheme has been managed by Tesco Pension Investment (TPI) which was set up in 2011. TPI has successfully implemented the Scheme’s investment strategy which has contributed to the Scheme being fully funded on the Trustee’s funding basis.

Last year, the Scheme implemented a new phase of its investment strategy and further reduced its investment risk. Following a careful review of the long-term needs of the Scheme, on the completion of the last actuarial valuation, the Trustee has taken the decision to appoint Schroders as the Scheme’s outsourced principal investment manager.  

Schroders was chosen to build on the achievements of TPI, with its deep investment expertise, alignment to the needs of the Scheme and determination to have a positive impact on the financial future of their clients, society and the environment.

Ruston Smith, Chair of Tesco Pension Trustee said:
“On completion of a comprehensive strategic review of the Scheme’s long-term needs, the Trustee has agreed to appoint Schroders as its outsourced principal investment manager. We are looking forward to working with Schroders to build on the huge achievements of Tesco Pension Investment in the implementation of the Scheme’s investment strategy and in delivering security for our members. The team at TPI have done an excellent job of managing the assets for more than a decade and have contributed to the Scheme being fully funded on the Trustee’s funding basis.” 

James Barham, Executive Chairman, Schroders Solutions said:
“We are really pleased to have the opportunity to partner with Tesco and grateful for the trust the Trustee has placed in us under the Schemes’ new Outsourced Chief Investment Officer (OCIO) approach. We are looking forward to working together to deliver a fully tailored OCIO service to the Tesco Plc Pension Scheme.

“This appointment reaffirms Schroders Solutions as the provider of choice for OCIO and fiduciary management services by offering an end-to-end solution with a specific focus on robust portfolio construction, responsible investing and bespoke service and reporting.”

The transfer of the management of the investment portfolio to Schroders will be completed before the end of 2024.

For further information, please contact:

Schroders

Tesco

 Note to Editors

LCP have been advisors.
To view the latest press releases from Schroders visit: http://ir.schroders.com/media

Schroders Solutions

Schroders Solutions is a £212.1 billion global capability with employees in the UK, US, Singapore, and Germany. Our dedicated solutions experts provide investment and advisory services to public and corporate pension schemes, official institutions, insurance companies, individual investors, intermediaries and wealth providers worldwide. Solving investment problems is integral to what we do. We draw on our knowledge and experience as a global provider to build bespoke investment solutions and strategies. We partner with our clients to understand their investment challenges and construct investment portfolios that deliver their desired financial outcomes. Our consultative approach draws on both Schroders’ investment skills and those of the wider investment industry. Schroders Solutions offers Fiduciary Management, Outsourced CIO, liability, duration and cashflow driven investing, as well as derivatives-based growth strategies. Our solutions are accessible to clients of all sizes through a flexible approach to implementation, sensitive to their needs and objectives.

Schroders Solutions manages over £100 billion in OCIO and outsourced partnerships with clients. Mandate wins include £1.2bn OCIO appointment for Kier Group, £10 billion OCIO appointment for Centrica, Investment partner appointment for Lloyd’s of London.

Source: Schroders as of 30 June 2023.

Schroders plc

Schroders is a global investment management firm with £726.1 billion (€846.1 billion; $923.1 billion) assets under management, as at 30 June 2023. Schroders continues to deliver strong financial results in ever challenging market conditions, with a market capitalisation of circa £7 billion, as at 30 June 2023, and over 6,100 employees across 38 locations. Established in 1804, the founding family remains a core shareholder, holding approximately 44% of Schroders’ shares.

Schroders has benefited from a diverse business model by geography, asset class and client type. It offers innovative products and solutions across four core growing business areas; asset management, solutions, Schroders Capital (private assets) and wealth management. Clients include insurance companies, pension schemes, sovereign wealth funds, high net worth individuals and foundations. Schroders also manages assets for end clients as part of its relationships with distributors, financial advisers and online platforms.  

Schroders aims to provide excellent investment performance to clients through active management. It also channels capital into sustainable and durable businesses to accelerate positive change in the world. Schroders’ business philosophy is based on the belief that if we deliver for clients, we will deliver for our shareholders and other stakeholders.

Issued by Schroder Investment Management Limited. Registration No 1893220 England. Authorised and regulated by the Financial Conduct Authority.  For regular updates by e-mail please register online at 

www.schroders.com

 for our alerting service.