£47bn BTPS launches management services for third party DB schemes

The £47bn BT Pension Scheme (BTPS) is opening its pension management services to wider defined benefit (DB) pension schemes, operating under the name Brightwell.

Previously, the Brightwell team integrated ESG considerations throughout the BTPS investment process, and also supported BTPS in setting a 2035 net zero goal.

The first third-party client has been announced as the EE Pension Scheme (EEPS), which has a DB section with 8,000 members and £1bn of assets under management. Brightwell will provide EEPS with fiduciary management services overseeing investment strategy, portfolio management, manager selection and oversight.

Morten Nilsson, chief executive of Brightwell said: “Defined benefit pension schemes are at an inflection point. The economic outlook is challenging, the portfolio risks posed by climate change need careful management and members expect high-quality online services which demand increased investment.

“We devised and implemented an ambitious programme of transformational improvement to the services we provide BTPS and learned a huge amount along the way. We are delighted that from today we can mark the next stage of our development by offering our unique skills and experience to EEPS.”

Denise Le Gal joins Brightwell as independent non-executive chair and will be responsible for leading the board and ensuring it meets its collective responsibilities. She will also chair the board’s remuneration committee.

Kevin Troup joins as a non-executive director and will be chair of the board’s risk, audit and compliance committee with responsibility for ensuring oversight of Brightwell’s risk management approach and internal controls.

In July last year, BTPS announced new climate targets for its credit and equity portfolios, targeting a reduction of 25% by 2025 for scope 1 and 2 emissions.