Tesco Pension Trustee partners with Schroders to manage investments for the Tesco Pension Scheme

9 February 2024

Tesco Pension Trustee and Schroders have agreed a partnership where Schroders Solutions, part of the Schroders Group, will manage the investments of the closed Tesco Defined Benefit Pension Scheme.

The Tesco Defined Benefit Pension Scheme has been managed by Tesco Pension Investment (TPI) which was set up in 2011. TPI has successfully implemented the Scheme’s investment strategy which has contributed to the Scheme being fully funded on the Trustee’s funding basis.

Last year, the Scheme implemented a new phase of its investment strategy and further reduced its investment risk. Following a careful review of the long-term needs of the Scheme, on the completion of the last actuarial valuation, the Trustee has taken the decision to appoint Schroders as the Scheme’s outsourced principal investment manager.

Schroders was chosen to build on the achievements of TPI, with its deep investment expertise, alignment to the needs of the Scheme and determination to have a positive impact on the financial future of their clients, society and the environment.

Ruston Smith, Chair of Tesco Pension Trustee said:

“On completion of a comprehensive strategic review of the Scheme’s long-term needs, the Trustee has agreed to appoint Schroders as its outsourced principal investment manager. We are looking forward to working with Schroders to build on the huge achievements of Tesco Pension Investment in the implementation of the Scheme’s investment strategy and in delivering security for our members. The team at TPI have done an excellent job of managing the assets for more than a decade and have contributed to the Scheme being fully funded on the Trustee’s funding basis.”

James Barham, Executive Chairman, Schroders Solutions said:

“We are really pleased to have the opportunity to partner with Tesco and grateful for the trust the Trustee has placed in us under the Schemes’ new Outsourced Chief Investment Officer (OCIO) approach. We are looking forward to working together to deliver a fully tailored OCIO service to the Tesco Plc Pension Scheme.

“This appointment reaffirms Schroders Solutions as the provider of choice for OCIO and fiduciary management services by offering an end-to-end solution with a specific focus on robust portfolio construction, responsible investing and bespoke service and reporting.”

The transfer of the management of the investment portfolio to Schroders will be completed before the end of 2024.

Source: Schroders
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