News in brief - 9 February 2024

The trustee of the Tesco Pension Scheme has appointed Schroders Solutions as its OCIO.

The closed defined benefit (DB) pension scheme was previously managed by Tesco Pension Investment (TPI), which contributed to the scheme being fully-funded on the trustee's funding basis. However, following a review of the long-term needs of the scheme, on the completion of the last actuarial valuation, the trustee took the decision to appoint Schroders as the scheme’s outsourced principal investment manager. Commenting on the appointment, Tesco Pension Trustee chair, Ruston Smith, said: “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."

Legal & General has partnered with Miller Homes to deliver 260 new build-to-rent homes in Northamptonshire.

The partnership aims to address the significant demand for rental housing across the UK by delivering homes and communities that enable people to live healthier lives. The 260 homes are largely comprised of two- and three-bed houses, with the first handover of units expected to take place in March 2024 and final handovers in Q3 2027. Commenting on the news, L&G Suburban Build-to-Rent business managing director, David Reid, said: “We’re delighted to begin a new strategic partnership with Miller Homes, simultaneously creating assets for our annuity division and other pension schemes and addressing the significant demand for quality rental housing across the UK. Now more than ever, we must deliver diverse residential offerings, to better accommodate the broad range of different households that exist in the market. This includes the provision of reliable, long-term rental options."

M&G has launched a new Global Corporate Bond Fund .

The fund was launched in response to increasing UK investor demand for large-scale bond diversification, as M&G pointed out that fixed income allocations are firmly back in favour and are offering yield opportunities relative to other asset classes as high interest rates and inflation continue to drive heightened volatility across the asset class. The fund launched with £164m of external investment and is now available to a growing cohort of UK investors seeking to diversify their fixed income allocations to maximise greater potential for returns outside of the UK market. It will be managed by Ben Lord, with Mario Eisenegger as co-manager, supported by a team of in-house credit analysts across the UK, Asia, Europe and the US.

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