Key Takeaways
- • Goldman Sachs Asset Management was appointed by various Shell-related pension entities and a captive insurance company to manage a $40 billion mandate for international pension plan assets in Europe, plus advisory services for North American pension plans.
- • The mandate is described by Goldman Sachs as one of the largest multi-national Outsourced Chief Investment Officer (OCIO) mandates the firm has won, following a competitive tender overseen by Isio.
- • The Shell mandates include the UK ($15.6 billion) and Germany ($2.8 billion), lifting Goldman's OCIO assets under supervision to nearly $450 billion globally.
- • Part of the mandate covers liability-driven investing (LDI) and cashflow-driven investing (CDI), adding to the roughly $300 billion the firm manages globally in those strategies.
- • Transitions are expected to complete later in 2025.
Summary
Goldman Sachs Asset Management has been appointed by various pension entities and a captive insurance company related to Shell Plc and its subsidiaries to manage a $40 billion mandate for international pension plan assets in Europe, according to a Goldman Sachs Asset Management announcement. The firm will also provide advisory services for pension plans in North America. The appointment follows a competitive tender process overseen by Isio, and the company describes it as one of the largest multi-national OCIO mandates in its history.
Each individual Shell pension fund set its own objectives and selection criteria, met with candidates locally, and made its own selection decision. The asset pools in each market will receive bespoke services. Shell's pension plan trustees will gain access to Goldman Sachs' global investment capabilities across public and private markets. The firm says the arrangement is designed to deliver performance and cost benefits through greater scale and efficiency, citing more than $3 trillion in assets under supervision.
The Shell mandates include the UK ($15.6 billion) and Germany ($2.8 billion). Goldman Sachs states the appointment brings its nearly $450 billion in global OCIO assets under supervision and represents a significant step for the European OCIO market. Part of the mandate covers liability-driven and cashflow-driven investing, expanding a franchise the firm says already manages approximately $300 billion globally in LDI and CDI portfolios. The transitions are expected to complete later in 2025.
Marc Nachmann, global head of Asset & Wealth Management at Goldman Sachs, said pension funds, insurers and asset owners increasingly seek differentiated alpha, total portfolio advice and customized solutions. Chloe Kipling, co-head of EMEA Institutional Client Coverage at Goldman Sachs Asset Management, said the firm aims to manage risk, generate cashflow and deliver sustainable returns for members of the Shell international plans.
Each individual Shell pension fund set its own objectives and selection criteria, met with candidates locally, and made its own selection decision. The asset pools in each market will receive bespoke services. Shell's pension plan trustees will gain access to Goldman Sachs' global investment capabilities across public and private markets. The firm says the arrangement is designed to deliver performance and cost benefits through greater scale and efficiency, citing more than $3 trillion in assets under supervision.
The Shell mandates include the UK ($15.6 billion) and Germany ($2.8 billion). Goldman Sachs states the appointment brings its nearly $450 billion in global OCIO assets under supervision and represents a significant step for the European OCIO market. Part of the mandate covers liability-driven and cashflow-driven investing, expanding a franchise the firm says already manages approximately $300 billion globally in LDI and CDI portfolios. The transitions are expected to complete later in 2025.
Marc Nachmann, global head of Asset & Wealth Management at Goldman Sachs, said pension funds, insurers and asset owners increasingly seek differentiated alpha, total portfolio advice and customized solutions. Chloe Kipling, co-head of EMEA Institutional Client Coverage at Goldman Sachs Asset Management, said the firm aims to manage risk, generate cashflow and deliver sustainable returns for members of the Shell international plans.
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