Schroders Solutions has been chosen as the outsourced chief investment officer (OCIO) for Kier Group Plc’s UK pension schemes, which have assets totalling £1.2 billion.
Kier Group is a company that works in infrastructure services, construction, and property in the UK.
There are five different pension plans, and Schroders Solutions will act as the OCIO. It will help the trustees by creating a single investment strategy framework and improving how the plans are managed.
One important part of managing these plans is handling the available money. Schroders Solutions was recognised for its handling of the gilts crisis last year and its internal liquidity management procedures and LDI competence. Over £100 billion in OCIO relationships are managed by Schroders Solutions.
Schroders head of OCIO and client specialist solutions Neil Walton says: “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.”
Vidett chair of the trustee board Mark Cliff says: “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.”
IC Select director Anne-Marie Gillon says: “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.”
