Science and technology firm Kellogg Brown & Root appointed Legal & General Investment Management as fiduciary manager for more than £1 billion ($1.3 billion) in U.K. pension fund assets.
Assets were transferred in December, LGIM said in a news release. The deal covers more than 9,000 KBR participants.
LGIM will take over management of the plan's strategic asset allocations and will also assist in the restructuring of KBR's private markets portfolio, with the intention of improving portfolio liquidity in preparation for buyout, the release said. Further details were not immediately available.
Part of the mandate also focuses on investing in bonds under insurer solvency requirements. "We see many mature schemes looking to improve the liquidity of their investment portfolios, and it's increasingly important for trustees to consider how best to structure their bond portfolios to seek to reduce risk on a buyout basis," said Tim Dougall, head of delegated solutions at LGIM, in the release. "We are very pleased to be bringing LGIM's full expertise to support the plan as part of a bridge to buyout."
KBR employs approximately 28,000 people across 34 countries.
