Schroders Solutions has been awarded a £740m (€88m) fiduciary management mandate by the trustees of the Aga Rangemaster Group Pension Scheme, the pension fund for the British manufacturer of range cookers and kitchen appliances, following an open and competitive tender process.
The mandate has been tailored to meet the fund’s strategic goals, including an agreed long-term return target, Schroders Solutions stated.
“Adopting a delegated approach, the appointment harnesses Schroders’ top-tier operational and active investment capabilities, focusing on long-term investment returns whilst maintaining strategic flexibility to respond to market conditions,” it added.
Schroders Solutions worked extensively with the trustees, and XPS Pensions Group, which acted as independent evaluators. Together, they developed a core investment strategy centred on cashflow-driven investment (CDI) assets, which can actively adapt to a changing investment environment.
Schroders Solutions also took on a range of less liquid holdings from the legacy investment strategy. The mandate plans to include more CDI assets as market conditions present themselves and as legacy illiquid strategies are phased out.
Roger Higgins, chair of Aga Rangemaster pension fund, said: “The proposition put forward by Schroders demonstrated a thorough understanding of the trustees’ needs in terms of team, strategy and governance.
“This appointment represents a significant next step in the management of the scheme’s investments following the improvement in the funding position of the scheme achieved by the Aga Rangemaster Group Pension Scheme Trustees.”
James Barham, executive chair of Schroders Solutions, said: “This successful mandate win demonstrates the strong engagement between the trustees (supported by the scheme sponsor), XPS and Schroders Solutions, which supported the development of a bespoke CDI solution that will generate the necessary returns to meet future scheme cashflows.”
He added that Schroders Solutions’ business objective “is to deliver bespoke OCIO strategies tailored to meet each client’s specific needs”.
This mandate win follows Schroders Solutions’ most recent fiduciary management wins: the £1bn Merchant Navy Ratings Pension Fund (MNRPF) selected the firm as fiduciary manager last May, while at the beginning of the year the Royal National Institute of Blind (RNIB) People Retirement Benefits Pension Scheme picked Schroders Solutions as fiduciary manager for its £170m assets.
No comments yet