Key Takeaways
- • Nokia Corp. appointed Mercer Investments, part of Mercer LLC (a Marsh McLennan company), as outsourced CIO and investment fiduciary for roughly $30 billion across its Nokia of America defined benefit pension, defined contribution and OPEB portfolios, a Nokia spokesperson confirmed to CIO.
- • Nokia's U.S. pension plan held $13.864 billion in assets across 90,189 participants, according to the plan year 2023 Form 5500.
- • The Nokia Savings/401(k) Plan ($9.082 billion, 25,956 participants) was outsourced to Mercer as 3(38) fiduciary investment manager; OPEB assets are about $737 million.
- • The Form 5500 shows the agreement with Mercer was signed in July 2024, with October 1 listed as the target start date for Mercer acting as fiduciary manager.
- • Jeanmarie Grisi, CIO of Nokia of America, will retire in March 2025 after nearly 25 years at Nokia and predecessor Alcatel-Lucent, according to a source.
Summary
Finnish telecom company Nokia Corp. has appointed Mercer Investments, part of Mercer LLC, a Marsh McLennan company, as its outsourced chief investment officer and investment fiduciary, according to a Nokia spokesperson who confirmed the move to CIO on Tuesday. The mandate covers the Nokia of America defined benefit pension funds, the defined contribution retirement plan and other post-employment benefit (OPEB) portfolios, which together total nearly $30 billion.
According to the plan year 2023 Form 5500 for the Nokia Retirement Income Plan, the company entered into an agreement with Mercer in July to outsource asset management, with October 1 listed as the target date for Mercer to begin acting as fiduciary manager of the plan. The U.S. pension plan held $13.864 billion in assets under management and 90,189 participants, including 7,492 active participants, 61,934 retired or separated participants receiving benefits, and 20,763 deferred participants.
The Nokia Savings/401(k) Plan, with $9.082 billion in assets and 25,956 participants, was also outsourced to Mercer as its 3(38) fiduciary investment manager. OPEB obligations, with assets of about $737 million, were included as well, according to the company's 2023 annual report and a company source.
Jeanmarie Grisi, CIO of Nokia of America Corp., will retire from the company in March 2025, according to a source. She has worked at Nokia and its predecessor, Alcatel-Lucent, for nearly 25 years.
The move reflects a broader trend. According to CIO's 2024 Outsourced Chief Investment Officer Survey, 30% of corporate pensions outsource or plan to outsource their assets to an OCIO provider, as corporate plans continue a streak of funding surpluses. Lack of internal resources was the top reason cited for outsourcing across all plan types, followed by faster implementation and decision-making and the need to increase returns.
According to the plan year 2023 Form 5500 for the Nokia Retirement Income Plan, the company entered into an agreement with Mercer in July to outsource asset management, with October 1 listed as the target date for Mercer to begin acting as fiduciary manager of the plan. The U.S. pension plan held $13.864 billion in assets under management and 90,189 participants, including 7,492 active participants, 61,934 retired or separated participants receiving benefits, and 20,763 deferred participants.
The Nokia Savings/401(k) Plan, with $9.082 billion in assets and 25,956 participants, was also outsourced to Mercer as its 3(38) fiduciary investment manager. OPEB obligations, with assets of about $737 million, were included as well, according to the company's 2023 annual report and a company source.
Jeanmarie Grisi, CIO of Nokia of America Corp., will retire from the company in March 2025, according to a source. She has worked at Nokia and its predecessor, Alcatel-Lucent, for nearly 25 years.
The move reflects a broader trend. According to CIO's 2024 Outsourced Chief Investment Officer Survey, 30% of corporate pensions outsource or plan to outsource their assets to an OCIO provider, as corporate plans continue a streak of funding surpluses. Lack of internal resources was the top reason cited for outsourcing across all plan types, followed by faster implementation and decision-making and the need to increase returns.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.