Schroders Solutions today announces it has been awarded a £740 million Fiduciary Management mandate by the Trustees of the Aga Rangemaster (the renowned kitchen appliance brand) Group Pension Scheme, following an open and competitive tender process.
The mandate has been tailored to meet the Scheme’s strategic goals, including an agreed long-term return target. 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.
Schroders Solutions worked extensively with the Trustees, and XPS Pensions Group, who acted as independent evaluators. Together, they developed a core investment strategy centered 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.
James Barham, Executive Chairman, 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. It further highlights the strength of the Schroders Solutions business since it was established three years ago. Our objective is to deliver bespoke 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.”
Roger Higgins, Chair of Aga Rangemaster Group Pension Scheme, said:
“We’re delighted to appoint Schroders Solutions as our Fiduciary Manager following a highly competitive selection process. 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. We look forward to working with Schroders Solutions.”
Andre Kerr, XPS Head of FM oversight added:
“We were delighted to support the Trustees and Scheme sponsor through this highly competitive process. 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.”
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