Veolia pension funds go with Schroders as outsourced CIO

Veolia U.K. Pension Plan and Veolia Energy Pension Scheme, both based in London, hired Schroders as fiduciary manager to cover £880 million ($1.1 billion) of assets.

James Trask, partner and head of fiduciary management oversight services at Lane Clark & Peacock, which facilitated the search process on the Veolia pension funds’ behalf, said the hire covers the two pension funds. Veolia U.K. Pension Plan makes up about 70% of the assets and Veolia Energy Pension Scheme, about 30%. The exact assets of each pension fund were not available.

An RFP was issued in March 2016, Mr. Trask said. The pension funds previously used Mercer on an advisory basis, but this is the first time the pension funds have used full outsourced CIO services.

Schroders will combine investment strategy advice and implementation under the contract. The assets were moved to Schroders under the new investment arrangements in the first quarter of this year, a Schroders news release said.

“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,” said Robert Hunt, chairman of Veolia U.K. Pension Trustees Ltd., in the Schroders news release.