Schroders has been appointed by Veolia UK Pension Trustees to be the fiduciary manager for their largest defined benefit schemes with a combined asset value of GBP880 million.
As fiduciary manager, Schroders will provide an integrated solution combining investment strategy advice and implementation.
Schroders was chosen following a competitive tender process facilitated by LCP. Schroders transitioned the assets to the new investment arrangements during the first quarter of 2017.
Peter Harrison (pictured), chief executive officer at Schroders, says: “We are delighted to have been selected to manage the Veolia pension schemes’ investment strategies in a fiduciary management arrangement. The trustees have adopted a new governance framework that enables swifter decision-making with a specific focus on managing pension fund deficit risk. Fiduciary management is an important and growing business for Schroders that reflects our emphasis on developing tailored solutions to meet clients’ investment needs.”
Robert Hunt, chairman of Veolia UK Pension Trustees, says: “The Veolia trustees look forward to a rewarding partnership with Schroders in the management of the pension scheme assets and our overriding aim of reducing both risk and deficit in the schemes. The professionalism demonstrated by the Schroders team has been a source of great encouragement for the trustees.”
James Trask, partner and head of fiduciary management oversight services at LCP, says: “Finding the right fiduciary manager is hugely important, and we spent time up front with the Veolia trustees to understand their key objectives for the exercise, as every process is different. The trustees invested time and effort in running a full and fair selection process, to find a trusted long-term partner that would understand their objectives and work alongside them. We were delighted to add our independent expertise to the process.”