UK – The £2.6bn (€3bn) Lafarge UK Pension Plan has appointed Towers Watson as fiduciary manager on the advice of KPMG, which is to fulfil an ongoing "monitoring" role.
The appointment represents a major boost for Towers Watson a year and half after it unveiled its separate fiduciary management team.
Norman Braithwaite, chairman of trustees at Lafarge, said the scheme had prioritised expertise and the level of resource needed to manage a large, mature and closed pension fund.
"We decided the delegated model offered by Towers Watson was the best, most flexible and long-term way to achieve our goals," he said.
"As a result of the thorough process we followed, we now have governance structures and working arrangements in place we are confident will deliver our funding and investment-performance goals in the best interests of all our members and stakeholders."
Lafarge pension scheme appointed KPMG as adviser on the various approaches to delegation and on the selection of a fiduciary manager.
KPMG has been selected by the scheme as an independent monitor of Towers Watson's management decisions after a competitive tender.
Towers Watson launched its separate fiduciary management business in December 2011, appointing Chris Mansi as CIO.
In an interview with IPE at the time, Chris Ford, EMEA head of investment – responsible for both the advisory and fiduciary management teams – said the separation would not create two independent entities.
Towers Watson's move at the end of 2011 followed on a number of appointments as delegated CIO.
In October 2010, the £3bn (€3.5bn) Merchant Navy Officers' Pension Fund (MNOPF) re-appointed the consultancy as its delegated CIO.
It has acted as investment adviser for the MNOPF since 1990 and was appointed in 2008 to become "highly engaged" in its asset management decisions and selections.
The UK pension fund of car manufacturer Jaguar appointed Towers Watson as delegated CIO in February 2012.