Lafarge has appointed Towers Watson as fiduciary manager for the investment requirements of its £2.6 billion defined benefit (DB) pension scheme.
The appointment follows a formal selection process undertaken by the trustees of the scheme and with advice from KPMG and Sackers.
KPMG’s remit was to advise Lafarge on the various approaches to delegation that are available to trustees, and on the selection of a fiduciary manager. Sackers provided legal advice.
Norman Braithwaite, chairman of trustees for the Lafarge UK Pension Plan, said: “Having taken into account the expertise and level of resource needed to manage a large, mature and closed pension fund such as ours, we decided that the delegated model offered by Towers Watson was the best, most flexible and long-term way to achieve our goals.
“As a result of the process we followed, we now have governance structures and working arrangements in place, which we are confident will deliver our funding and investment performance goals in the best interests of all our members and stakeholders.”
Patrick McCoy, head of investment advisory at KPMG, added: “We believe that Lafarge’s approach to fiduciary management, enlisting a third-party to undertake an objective review and ultimately advise on an appointment, is an industry benchmark for any other pension scheme seeking to review its governance structures.”
