Honda pension scheme appoints Mercer as fiduciary manager

Honda Group-UK Pension Scheme Trustee has appointed Mercer to provide fiduciary management services for their £1.7bn UK pension scheme.

As reported by our sister title, Pensions Age, the Honda trustee decided to appoint Mercer after a review of its own governance approach.

Mercer will help the trustee focus on their strategic funding objectives by providing operational and implementation support.

Mercer stated that the appointment will further grow its fiduciary management business, which is “on track” to fund approximately £7bn in UK fiduciary management assets in 2021.

As of 30 September 2021, Mercer’s total UK assets under management stood at £59bn.

Commenting on the announcement, Honda Trustee Investment Sub-Committee chair, Mike Godfrey, said: “We were looking for a partner to help us achieve our investment objectives for the scheme.

“The Mercer team gave us the confidence that they have the skills and expertise to deliver a highly bespoke solution, specific to our requirements.

“Key to their appointment was understanding of our needs and the quality of the bespoke solution to achieve our objectives, including the continued integration of environmental, social and governance (ESG) and climate change considerations into our investment strategy.”

Mercer head of UK investments and partner, Dan Melley, added: “We are delighted to have been selected as fiduciary manager by Honda Trustee and look forward to partnering with them as their requirements evolve.

“We expect the trend towards larger schemes using fiduciary management solutions to continue.

“In particular, market uncertainty, governance burdens and increased focus on ESG integration seem to be driving renewed consideration of fiduciary management solutions.

“Moving forward, we see a great opportunity to support trustees of defined benefit schemes in reviewing their governance structures as they plan their ‘endgame’ solutions.”

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