Tesco Pension Investment Ltd., which manages the pension fund of the biggest U.K. retailer, said it hired David Brickman as senior credit portfolio manager.
Brickman, who joined the unit in December, was previously head of credit at Aerion Fund Management Ltd. Jon Cunliffe heads the fixed income team at Tesco Pension Investment and Steven Daniels is chief investment officer.
Tesco said in May 2012 that it was creating an investment team to manage the company’s pension fund, which has more than six billion pounds ($9.9 billion) in assets, to reduce costs and increase net returns. The retailer manages one of the U.K.’s largest defined benefit pension plans, covering more than 170,000 of its 416,000 employees, according to the Cheshunt, England-based company.
Tesco’s pension deficit increased to 2.4 billion pounds from 1.8 billion pounds at the end of 2012 because of falling corporate bond yields, the company said in its interim management statement published in October. It said the shortfall was “partly offset” by higher-than-expected asset returns over the period.
Brickman was head of European credit strategy at Lehman Brothers Holdings Inc. until May 2008. The bank collapsed in September that year, triggering a global financial crisis.