BlackRock announced it had partnered with the Rolls-Royce target date fund (TDF), with an investment plan designed especially for its 34,000 members.
BlackRock said it would be supporting the launch of a custom-built workplace pension default fund; the TDF solution operates on a 'glidepath’ where investments are shifted from higher-risk to lower-risk assets as members approach their retirement date.
The asset manager said the solution’s custom design was 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, will be dynamically adjusted to achieve attractive risk-adjusted returns throughout the members' journey to retirement.
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, 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 bringing to members and look forward to a long-term partnership with Rolls-Royce.”
