Key Takeaways
- • Schroders Solutions has been appointed by the Aga Rangemaster Group Pension Scheme for a fiduciary management brief valued at £740m, per Professional Pensions.
- • The mandate centres on a core investment strategy built around cashflow-driven investment (CDI) assets, developed with trustees and independent evaluator XPS Group.
- • Schroders Solutions also took on a range of less liquid legacy holdings, with plans to add more CDI assets as market conditions allow and legacy illiquid strategies are phased out.
- • The win extends a run of Schroders Solutions OCIO and fiduciary mandates, including a £10bn Centrica scheme deal (April 2022) and a £1.2bn Kier Group deal (September 2023).
Summary
The Aga Rangemaster Group Pension Scheme has appointed Schroders Solutions for a £740m fiduciary brief, according to Professional Pensions. The mandate has been tailored to the scheme's strategic goals. Schroders Solutions is working with the trustees and the scheme's independent evaluator, XPS Group, to develop a core investment strategy centred on cashflow-driven investment (CDI) assets.
Schroders Solutions said it also took on a range of less liquid holdings from the scheme's legacy investment strategy. The mandate is expected to include more CDI assets as market conditions present opportunities and as legacy illiquid strategies are phased out.
Aga Rangemaster Group Pension Scheme chair Roger Higgins said the proposition from Schroders "demonstrated a thorough understanding of the trustees' needs in terms of team, strategy and governance." He described the appointment as a significant next step in managing the scheme's investments, following an improvement in the scheme's funding position achieved by the trustees.
Schroders Solutions executive chair James Barham said the win reflected strong engagement between the trustees, the scheme sponsor, XPS and Schroders Solutions in developing a bespoke CDI solution designed to generate the returns needed to meet future scheme cashflows. He noted the business has been operating for three years and that its objective is to deliver bespoke outsourced chief investment officer (OCIO) strategies. XPS head of FM oversight Andre Kerr said the Schroders proposal showed alignment with the scheme's immediate needs and flexibility to evolve over time.
The mandate follows several earlier wins for Schroders Solutions, including a £10bn OCIO mandate from the trustees of Centrica's pension schemes in April 2022, a £1.2bn OCIO mandate covering five Kier Group schemes in September 2023, an OCIO arrangement for the closed Tesco Defined Benefit Pension Scheme, and an appointment as fiduciary manager by the Merchant Navy Ratings Pension Fund.
Schroders Solutions said it also took on a range of less liquid holdings from the scheme's legacy investment strategy. The mandate is expected to include more CDI assets as market conditions present opportunities and as legacy illiquid strategies are phased out.
Aga Rangemaster Group Pension Scheme chair Roger Higgins said the proposition from Schroders "demonstrated a thorough understanding of the trustees' needs in terms of team, strategy and governance." He described the appointment as a significant next step in managing the scheme's investments, following an improvement in the scheme's funding position achieved by the trustees.
Schroders Solutions executive chair James Barham said the win reflected strong engagement between the trustees, the scheme sponsor, XPS and Schroders Solutions in developing a bespoke CDI solution designed to generate the returns needed to meet future scheme cashflows. He noted the business has been operating for three years and that its objective is to deliver bespoke outsourced chief investment officer (OCIO) strategies. XPS head of FM oversight Andre Kerr said the Schroders proposal showed alignment with the scheme's immediate needs and flexibility to evolve over time.
The mandate follows several earlier wins for Schroders Solutions, including a £10bn OCIO mandate from the trustees of Centrica's pension schemes in April 2022, a £1.2bn OCIO mandate covering five Kier Group schemes in September 2023, an OCIO arrangement for the closed Tesco Defined Benefit Pension Scheme, and an appointment as fiduciary manager by the Merchant Navy Ratings Pension Fund.
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