The £1.2bn Plumbing & Mechanical Services Industry Pension Scheme has appointed WTW as its fiduciary manager, or “outsourced chief investment officer”.
The appointment follows a competitive tender process led by Barnett Waddingham, and forms part of the pension scheme’s long-term plan to achieve a full scheme buyout.
As of 5 April 2024, the plumbing industry scheme had a £258m deficit on a buyout funding basis, according to its most recent annual report. Chair of trustees Jon Bridger said in his introduction to the report that the trustee board was “reviewing the structure for managing the scheme’s assets to ensure that the most efficient structure is in place to achieve the required objective”.
Announcing the appointment today (9 July), WTW said it would work with the trustees, investment adviser Aon, and the scheme actuary – also WTW, according to the annual report – on the delivery of the investment strategy.
The adoption of the fiduciary management model aimed to deliver “reliable returns”, WTW said, as well as “faster decision-making and more effective risk management”.
Bridger said: “We were impressed by WTW’s deep understanding of our scheme’s unique needs and their ability to tailor a solution that balances resilience with long-term value creation. Their collaborative and innovative approach gave us confidence that they are the right partner to help us navigate the next phase of our journey.”
Ben Johnson, senior director at WTW, added that his firm’s approach was “designed to deliver the outcomes that matter most to the trustees, the employers, and members – paying pensions reliably, managing downside risk effectively, and progressing toward buyout in a controlled and transparent way.”
Plumbing Pensions’ existing investment managers before WTW’s appointment included Baillie Gifford, BlackRock, CBRE, DTZ, Insight Investment, KKR, Legal & General, Macquarie and Pimco, according to the annual report.
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