On the go: The new £9.9bn British Steel Pension Scheme has agreed in principle to appoint Legal & General Investment Management to handle its scheme assets in full.
The newly selected investment manager will replace the previous in-house team, with a number of employees transferring to LGIM to support the transition, which is expected to commence in the final quarter of 2022, the scheme said.
The scheme already used LGIM to manage several of its sub-portfolios and has secured a series of buy-in policies with Legal & General Assurance Society.
Keith Greenfield, chair and independent trustee director at BSPS, noted that the company already manages and insures just under 40 per cent of the scheme’s assets.
“Leveraging the scale and expertise of LGIM will resolve a number of cost and operational risk issues and will support our strategy to secure liabilities in full with one or more insurers,” he noted.
Elsewhere, the scheme intends to have sold down its global-listed infrastructure equities allocation by January 2025, its most recent statement of investment principles revealed. The portfolio currently has a 5.5 per cent strategic target.
The proceeds of the sale are expected to be used to expand the global sub-investment-grade credit and private credit allocations.
This article originally appeared on MandateWire.com
