Investment - Articles - Rolls Royce and BlackRock launch custom pension default fund

 BlackRock announced today that it is partnering with the Rolls-Royce Retirement Savings Trust to support their transition to a new bespoke Target Date Fund (TDF) solution, which will deliver retirement benefits to their 34,000 members.

 Improving retirement outcomes and ensuring a seamless member experience are at the heart of this partnership. The Rolls-Royce TDF solution, tailored exclusively for the scheme, will focus on growing members’ retirement benefits before gradually shifting from higher to lower-risk investments, as members approach their retirement date.

 The solution’s custom design is also centred around member-simplicity, with members only having to set a realistic retirement age and, when that date is reached, either take their retirement savings, or change their retirement age to a date in the future.

 The investment mix, in funds managed by BlackRock, is dynamically adjusted to achieve attractive riskadjusted returns throughout the members' journey to retirement.

 BlackRock's unique insight into long-term savings cycles will inform the asset allocation advice. By leveraging BlackRock’s global platform and expertise, the solution has been carefully designed to invest members’ funds into bespoke TDF vintages based on the expected retirement year.

 Fiona Brown, Group Head of Pensions at Rolls-Royce Plc, 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, Head of UK at BlackRock, 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.”