Tesco new in-house investment team to manage employee pension scheme
Tesco and its Pension Fund Trustees are establishing an in-house investment team to manage the Tesco employee pension scheme and increase net returns.
Tesco has one of the largest private sector pension schemes in the UK, with over 170,000 employees part of the defined benefit scheme that has investment assets worth over £6 billion. The retailer said the new in-house investment team will reduce dependence on external providers while governance continues to be provided by the Trustees.
Lucy Neville-Rolfe, executive director for corporate and legal affairs said: “We are building a high-calibre in-house team to help manage our growing scheme and reduce dependence on external providers. I’m delighted that we have now received FSA approval and can start taking some of our investments in-house.”
A separate company, Tesco Pension Investment, has been set up and is now operational, having been granted FSA approval on 26 March 2012. Tesco said the Pension Trustees will remain responsible for the long-term investment strategy and management of the scheme’s assets.
The new team will be led by Steven Daniels, chief investment officer, while Tesco’s group pensions director Ruston Smith will oversee the team. Daniels was group chief investment officer at Liverpool Victoria for 14 years.
