The trustees of the Aga Rangemaster Group Pension Scheme have awarded Schroders Solutions a £740m fiduciary management mandate, following an open and competitive tender process.

The mandate was tailored to meet the scheme's strategic goals, including an agreed long-term return target.

Adopting a delegated approach, the appointment will look to harness Schroders' 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, to develop a core investment strategy centred on
cashflow-driven investment (CDI) assets that could 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 improve and legacy illiquid strategies are phased out.

Aga Rangemaster Group Pension Scheme chair, Roger Higgins, commented on the announcement: "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 managing the scheme's investments following the improvement in the scheme's funding position achieved by the Aga Rangemaster Group Pension Scheme trustees. We look forward to working with Schroders Solutions," he said.

Schroders Solutions executive chairman, 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," continued Barham.

"We aim to deliver bespoke outsourced chief investment officer (OCIO) strategies tailored to meet client's needs.

"We are grateful for the trust placed in us and look forward to working closely with the trustees, scheme sponsor and XPS," he concluded.

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