The Trustee and Legal & General Investment Management (LGIM) have today announced that agreement in principle has been reached that LGIM is to be appointed to manage the combined assets of the Scheme. A copy of the joint Trustee / LGIM statement can be found here.

The Trustee would like to take this opportunity to thank the Scheme’s Chief Investment Officer, Hugh Smart, and colleagues past and present in the London Investment Office for their significant contribution to both the old and new British Steel Pension Schemes over a period of many years. 

At its peak, the London Investment Office managed around £15.6 billion of assets on behalf of Scheme members consistently achieving benchmark-beating levels of performance. Assets under management have subsequently decreased to c£6 billion mainly as a result of the RAA/Scheme split in 2017 and the Scheme insuring around 30% of liabilities to date and this value will decrease further as the Trustee pursues its strategy to secure liabilities in full with one or more insurers.

The Trustee Chairman, Keith Greenfield has said “Our in house investment team has served the Scheme and its members very well over many years; However with assets under management rapidly decreasing through buy-in transactions, the issue of managing operational risks and costs has been heightened and, together with the additional skills and expertise that LGIM can bring as the scheme approaches its strategic objective, means that now is the correct time to make this move.

A number of employees will be transferring to LGIM to support the transition and the Trustee is putting in place arrangements to support those colleagues not transferring as they enter the next phase of their careers."

 

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