OCIO to manage £1.2bn for Kier Group schemes
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Kier Group plc’s UK pension schemes have appointed Schroders Solutions to manage £1.2bn as outsourced chief investment officer.
The UK infrastructure services, construction and property group has hired Schroders for five schemes. Schroders said it will support the trustees in applying a a common investment strategy framework and streamlining the operational running of the schemes.
The mandate includes liability-driven investments, and Schroders said its LDI capabilities, navigation of the gilts crisis and in-house liquidity management helped it win the mandate. The firm currently handles more than £100bn in OCIO mandates.
Mark Cliff from trustee firm Vidett, who chairs the trustee board, 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.”
The trustees were supported by fiduciary manager evaluators IC Select.
”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,” said Anne-Marie Gillon, director at IC Select.
Head of OCIO and client specialist solutions at Schroders, Neil Walton, said: “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.”
Why are trustees turning to OCIOs?
