Energy giant E.ON has outsourced the investment management of its defined benefit pension scheme to Schroders through an outsourced chief investment office (OCIO) mandate.
It means Schroders will take on the management of the portfolio for the £3bn E.ON UK Group pension fund, which is part of the £29bn Electricity Supply Pension Scheme.
The trustee board, chaired by Capital Cranfield’s Martine Trouard-Riolle, opted for the OCIO arrangement following a review of the scheme’s investment needs “with a focus on achieving value for money”, according to Schroders.
The asset manager will now oversee the implementation of the investment strategy, including direct asset management and oversight of external investment managers, as well as “asset realisation timings to meet cashflow needs”.
Trouard-Riolle said the appointment was made “following a highly competitive selection process”. “The proposition and the team put forward by Schroders demonstrated a strong balance of proven investment components and value for money,” she added.
Schroders’ recent fiduciary appointments include a £740m mandate from the Aga Rangemaster Group Pension Scheme, and a £170m mandate from the Royal National Institute of Blind People’s Retirement Benefits Scheme. In 2024, it secured its biggest mandate yet to run Tesco’s £13bn pension scheme, taking over from the in-house investment team.
The asset manager established its OCIO offering in 2021 when it acquired River & Mercantile’s fiduciary management business, and it took over the management of the Centrica Pension Scheme’s £10bn investment portfolio in 2022, bringing on board several of Centrica’s in-house staff.
