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Nestle moves pension assets to BlackRock as it reorganizes internal management unit

Nestle SA, Vevey, Switzerland, hired Blackrock (BLK) Advisors (U.K.) as acting interim investment manager for its pension funds, said a spokesman for the Swiss transnational food and drink company.

By changing the central pension organization, the sponsoring employer aims to manage risk more effectively, strengthen governance and reduce operational costs, the spokesman added.

According to Nestle's 2016 financial report, Nestle Capital Advisers and its subsidiaries, Nestle Capital Management and Robusta Asset Management, managed the assets of Nestle's pension funds. Nestle Capital Management had 10.4 billion Swiss francs ($10.2 billion) under management as of Dec. 31. The assets managed by Robusta Asset Management amounted to 9.5 billion Swiss francs on Dec. 31.

Nestle has retirement arrangements in Switzerland, Germany, the U.K. and U.S. The spokesman declined to comment on whether all pension funds are affected by the change of managers and whether internal money management will be completely dropped.

“We are continuously exploring ways in which our company can operate sustainably in a highly competitive business environment. Nestle is thus strengthening its pension management strategy by changing its central pension organization. This change in Nestle's pension organization will also promote a more collaborative working relationship between our company and local market pension funds,” the spokesman said.

Further information was not provided.