Goldman Sachs Asset Management has announced that it has been appointed by various pension entities and a captive insurance company related to Shell Plc and its subsidiaries to manage a USD40 billion mandate for international pension plan assets in Europe and provide advisory services for pension plans in North America.
The appointment represents one of the largest ever multi-national Outsourced Chief Investment Officer (“OCIO”) mandates for Goldman Sachs and follows a competitive tender process, overseen by Isio.
Each individual pension fund set clear objectives and selection criteria for the tender process, met with potential candidates locally and ultimately made their own selection decision. The asset pools in each respective market will be provided with bespoke and flexible services in order to meet their varying needs and objectives.
Shell’s pension plan trustees will have access to the global investment capabilities of Goldman Sachs across public and private markets. The firm writes that the appointment seeks to deliver performance and cost benefits for the asset pools through the greater scale and efficiency that Goldman Sachs can achieve as one of the world’s leading asset managers with more than USD3 trillion in assets under supervision.
The transitions are expected to complete later in 2025.
The firm writes that the appointment affirms its position as a leading OCIO manager, with nearly USD450 billion in OCIO assets under supervision globally. “The Shell mandates, including the UK (USD15.6 billion) and Germany (USD2.8 billion) represent a significant step forward in the wider European OCIO market, as pension plans, insurers and other asset owners recognise the potential governance, performance and cost benefits of outsourced solutions in an increasingly complex environment.
“Some of the mandate includes management of liability driven investing (LDI) and cashflow driven investing (CDI), expanding Goldman Sachs Asset Management’s position in LDI and CDI markets, adding to the approximately USD300 billion managed by the firm globally in LDI and CDI portfolios.”
Marc Nachmann, global head of Asset & Wealth Management at Goldman Sachs, says: “Pension funds, insurers and other asset owners increasingly want differentiated alpha, holistic total portfolio advice and customised portfolio solutions, delivered through an exceptional client experience. They recognise that OCIO partners can have deeper investment expertise, technology resources, and operational infrastructure to help meet objectives. We are proud that Shell’s pension fund Trustees across several countries have chosen to partner with us to deliver the full capabilities of Goldman Sachs for their members.”
Chloe Kipling, co-head of the EMEA Institutional Client Coverage at Goldman Sachs Asset Management, says: “Our approach to OCIO services is underpinned by extensive risk management experience and driven by a focus on building strong client partnerships. We look forward to implementing bespoke solutions that seek to manage risk, generate cashflow and deliver sustainable returns on behalf of members of the Shell international plans.”
