Rolls-Royce picks DC default manager
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Rolls-Royce has selected BlackRock to manage about £840m in target date funds for 34,000 members in the Rolls-Royce Retirement Savings Trust.
The TDF solution was designed specifically for the £1bn Rolls-Royce scheme. It will gradually shift investments from higher-risk to lower-risk assets as members approach their retirement date, said BlackRock, which also manages the underlying investment funds.
Fiona Brown, group head of pensions at Rolls-Royce, said: “We’re delighted with the design of the new TDF funds which have been achieved by the BlackRock, Aviva and Mercer teams working closely with the Rolls-Royce team and trustees. We look forward to a long and successful partnership.”
Sarah Melvin, the asset manager’s head of UK, said: “When Rolls-Royce set out to create a bespoke target date fund solution for their default fund, their intention was to create the market gold standard in defined contribution design. We’re proud of the solution we’re helping them bring to members and look forward to a long-term partnership with Rolls-Royce.”
The investment adviser to the scheme, Mercer, said it helped the trustees with the launch of the bespoke TDF structure for its new default investment strategy from an initial selection to review the investment design – with a focus on member outcomes at retirement – through to final implementation.
Tej Patel, who led the team which also included Jas Purewal, Barbara Durazzo and Adriana Libanio, said: “Mercer has a breadth of experience in determining scheme members are on track for adequate incomes at retirement and we look forward to continuing to work with all parties to monitor member progress through the new design.”
Aviva is the administrator and investment platform provider for the Rolls-Royce Retirement Savings Trust.
Emma Douglas, the provider’s director of workplace savings and retirement, said: “We have delivered the capability to administer this new investment strategy which will help to ensure members achieve good retirement savings outcomes. We look forward to continuing our long and successful partnership.”
What are the pros and cons of TDFs?
