Russell Investments secures GBP300m fiduciary management mandate

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Global investment solutions provider Russell Investments has been appointed by the Wates Pension Fund to provide fiduciary management services for its GBP300 million defined benefit fund. The competitive tender exercise was run by IC Select.

The Wates Group is a leading privately-owned UK construction, residential development and property services business employing approximately 3,700 people.

Russell Investments, which has over 40 years of experience providing fiduciary management solutions and services, will be responsible for developing and implementing an investment strategy with a focus on generating income and managing investment risk to ensure that the Fund meets its long-term liabilities.

In addition to investing in listed securities, the Wates Pension Fund will also utilise Russell Investments’ specialist expertise to gain access to private market investments, including private debt investments where future cashflows can be used to help meet the Fund’s future benefit payments.  

Demand for fiduciary management solutions is strong as institutional asset owners recognise the benefits of access to best-in-class strategic advice and implementation to meet their long-term goals. According to a recent study, assets in UK outsourced investment solutions reached GBP200 billion in 2020, an increase of 15 per cent over the prior year.

Russell Investments currently manages over GBP83 billion in fiduciary mandates globally with a 70-person strong fiduciary management team based in London.

Chair of the Trustees, Martine Trouard-Riolle, Capital Cranfield, says: “We appointed Russell Investments following a competitive tender exercise. IC Select helped us prioritise what was important to us as a board and Russell Investments quickly developed a strong understanding of our circumstances and proposed and implemented a portfolio which was aligned with our investment objectives.”

Jim Leggate, Managing Director, Head of UK Institutional, Middle East & Africa at Russell Investments, adds: “Given the current market environment, generating income whilst managing interest rate and inflation risk are key concerns for pension scheme trustees.

“Our highly experienced team will dynamically manage the Wates Pension Fund’s investment portfolio to deliver a tailored investment solution that aligns with the evolving needs of the Fund and progressively provides increased financial security for its members.”

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