Centrica pension schemes appoint Schroders Solutions as OCIO

The trustees of Centrica’s pension schemes have appointed Schroders Solutions as their outsourced chief investment officer (OCIO) for their £10bn of assets.

The schemes’ assets will be managed in an open architecture framework, supported by asset management and investment solutions capabilities, and Schroders’ sustainability expertise.

In its role as OCIO, Schroders Solutions will help the trustees develop the schemes’ investment strategy, construct the portfolio, and manage and oversee third-party managers.

Furthermore, the trustees will be assisted by Schroders Solutions in fulfilling the schemes’ regulatory requirements.

As part of the mandate appointments, seven Centrica in-house investment specialists, led by its CIO, Chetan Ghosh, will join Schroders Solutions.

Schroders Solutions noted that the appointment, which is expected to be effective during Q2 2022, will reduce key man risk while ensuring continuity of service to the trustees.

Commenting on the announcement, Centrica pension schemes chair of trustees, Allan Whalley, said: “After a thorough selection process, supported by Isio’s investment team, we are very pleased to announce that we are partnering with Schroders Solutions under an OCIO model to take forward our investment strategy and deliver security for the members of the three Centrica pension schemes.”

Schroders Solutions head of OCIO and specialist situations, Neil Walton, added: “I am looking forward to welcoming Chetan Ghosh and his team into Schroders Solutions and working together to deliver a fully tailored OCIO service to the Centrica pension schemes.

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

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