Schroders Solutions' James Barham
The trustees of the Aga Rangemaster Group Pension Scheme have awarded Schroders Solutions a £740m fiduciary management (FM) mandate following a competitive tender process.
The scheme's mandate has been tailored to meet its strategic goals – with Schroders Solutions working with the trustees and the scheme's independent evaluators, XPS Group, to develop a core investment strategy centered on cashflow-driven investment (CDI) assets.
Schroders Solutions said it also took on a range of less liquid holdings from the legacy investment strategy – noting the mandate plans to include more CDI assets as market conditions present themselves and as legacy illiquid strategies are phased out.
Aga Rangemaster Group Pension Scheme chair Roger Higgins 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."
Schroders Solutions executive chair James Barham added: "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.
"It further highlights the strength of the Schroders Solutions business since it was established three years ago. Our objective is to deliver bespoke outsourced chief investment officer (OCIO) strategies tailored to meet each client's specific needs.
"We are grateful for the trust placed in us and look forward to working closely with the trustees, scheme sponsor and XPS."
XPS head of FM oversight Andre Kerr added: "The proposal from Schroders demonstrated real alignment with the immediate needs of the scheme and flexibility on how these could evolve into the future. We are looking forward to working with the trustees, Schroders and other key stakeholders."
This mandate follows a string of mandate wins for Schroders Solutions over the past three years – including a £10bn OCIO mandate from the trustees of Centrica's pension schemes in April 2022; a £1.2bn OCIO mandate covering five of Kier Group's schemes in September 2023; an OCIO deal to manage the benefits of the closed Tesco Defined Benefit Pension Scheme in February last year; and its appointment as fiduciary manager by the Merchant Navy Ratings Pension Fund in May last year.
