Rolls-Royce Retirement Savings Trust, Derby, England hired BlackRock as its first provider of custom target-date funds for its £840 million ($1.1 billion) default option.
The £1 billion retirement plan has 34,000 participants in its default fund.
BlackRock will provide TDFs in both the accumulation and decumulation phases of the default fund. Plan participants within the growth phase will predominantly allocate to a range of equities and also have an allocation to real estate, a BlackRock spokesman said. As they get closer to retirement, asset allocation starts to derisk with the equity allocation reducing and being replaced with fixed income assets and commodities, he added.
Fiona Brown, group head of pensions at Rolls-Royce PLC, said in a news release that the design of the new TDF funds was built jointly by BlackRock, the plan's administrator Aviva and Mercer, the Rolls-Royce team and trustees.
A spokesman could not be immediately reached to provide further details.
