Heath Mottram, head of investment and funding at the £27.6 billion ($44.4 billion) Royal Mail Pension Plan, London, will be leaving in October, according to two sources familiar with the move.
Mr. Mottram’s departure coincides with the British government plans to assume the bulk of the pension assets and liabilities before selling as much as 90% of the state-owned company. As a result, the government is likely to liquidate most of the fund’s assets over time, although it is not known which mandates will be immediately affected, other sources said.
As of March 31, BlackRock managed a liability-driven investing portfolio valued at £11.4 billion. Hermes Fund Managers ran a total of about £4.3 billion in several strategies, including emerging markets equities, index-linked bonds, private equity, government bonds and cash. Other managers included Beach Point Capital, Dimensional Fund Advisors; Hamilton Lane, LaSalle Investment Management, Legal & General Investment Management, Pantheon Ventures, Pathway Capital Management, Standard Life Investments, State Street Global Advisors, Walter Scott & Partners and Wellington Management.
Separately, European Union regulators are investigating the British government’s role in assuming the pension liabilities of Royal Mail to ensure that “the state measures do not provide undue advantages to Royal Mail,” according to a statement from EU in July.
Mr. Mottram could not be reached by press time for comment. Additional information about his replacement was not available.