Shell hands $40bn global pensions and captive mandate to Goldman Sachs

Shell has awarded Goldman Sachs Asset Management (GSAM) a landmark $40 billion investment mandate spanning pension entities and a captive insurance company linked to the energy group.

The appointment, confirmed this week, is one of the largest ever multi-national Outsourced Chief Investment Officer (OCIO) mandates for Goldman Sachs. It covers international pension plan assets across Europe and advisory services for North American schemes, following a competitive tender overseen by consultancy Isio.

Each of Shell’s pension funds set their own criteria and selection processes before opting for GSAM, which will now provide bespoke services to meet local needs. Trustees will gain access to Goldman’s global investment platform across public and private markets, with the scale of the mandate expected to deliver both cost and performance benefits.

The move also extends to Shell’s captive insurer, underlining the increasingly strategic role of captives in managing long-term assets alongside pensions and retirement plans. In a statement, GSAM said the arrangement will bring “greater scale and efficiency” to Shell’s asset pools, with transitions expected to complete later in 2025.

Marc Nachmann, global head of asset and wealth management at Goldman Sachs, said: “Pension funds, insurers and other asset owners increasingly want differentiated alpha, holistic total portfolio advice and customised portfolio solutions. We are proud that Shell’s pension fund Trustees across several countries have chosen to partner with us to deliver the full capabilities of Goldman Sachs for their members.”

Chloe Kipling, co-head of the EMEA Institutional Client Coverage at GSAM, added: “Our approach to OCIO services is underpinned by extensive risk management experience and driven by a focus on building strong client partnerships. We look forward to implementing bespoke solutions that seek to manage risk, generate cashflow and deliver sustainable returns.”

The Shell mandate, which includes $15.6 bn in the UK and $2.8 bn in Germany, marks a significant step forward for the European OCIO market as large asset owners weigh the governance and efficiency advantages of outsourced models.

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