Investments & Willis Towers Watson

The Lafarge UK Pension Plan has appointed Willis Towers Watson as the fiduciary manager of the investments for the Deferred Benefit section of the Plan effective from 1 July 2013, and the change has been made for a combination of reasons that have begun to converge. The main ones being:

  • that the Plan is now closed to new entrants and future accruals so accelerating the "flight path"
  • desire to use a more sophisticated approach to Liability Driven Investment
  • a need to diversify away from a quoted Equity Risk Premium; and
  • to have governance in place that can react to and capture improvements in funding position and reduce risk as the Plan moves towards a fully funded position.

The new arrangements were initially put in place through transitional arrangements which increased the range and diversity of investments, Subsequently the Fiduciary Manager has appointed a wide range of investment managers with investments across a diverse range of asset classes. In line with the Plan's new investments strategy performance is compared against a benchmark that is based on the Plan's liabilities (is in relation to the Plan's funding position). The Trustee and Towers Watson believe that the new benchmark will be more relevant as the Plan matures over time.