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Professional Pensions Article: Civil Aviation Authority awards £4bn fiduciary mandate to BlackRock
“IC Select is proud to have assisted the trustees of Civil Aviation Authority Pension Scheme with this selection exercise, one of 17 similar investment adviser selection projects for DB schemes in 2019-2020 ytd, totalling £13bn. Who said that Covid-19 has slowed things down!”
The Civil Aviation Authority Pension Scheme (CAAPS) has appointed BlackRock to run a £4bn fiduciary mandate for its growth portfolios.
Following a competitive tender process, the manager was chosen to plan and execute the asset allocation and manager selection across all asset classes in the portfolio for both the CAA and the National Air Traffic Services (NATS) sections.
A bespoke approach has been agreed with a focus on partnership, risk management, and a differentiated approach to asset allocation. A custom portfolio will be built according to each section's needs with an aim to deliver greater portfolio resilience and less volatile results.
The scheme previously held a delegated growth asset mandate with Russell Investments.
Independent trustee chairwoman Joanna Matthews, who is also a professional trustee at Capital Cranfield, said: "We conducted a thorough review of the fiduciary manager market with the assistance of an independent consultant, IC Select, and selected BlackRock as they were a good cultural fit and they clearly demonstrated the strength of their investment offering and the scale and depth of their resources."
BlackRock head of UK fiduciary business Sion Cole said: "Providing a whole-portfolio approach when making asset allocation decisions allows us to create and deliver a truly tailored and innovative portfolio for CAAPS, helping them to secure the retirement benefits of their members."
The mandate will include the use of BlackRock's risk platform, Aladdin, to aid in understanding the risk and return characteristics driving the scheme's funding levels and deliver more stable returns.
BlackRock head of UK Sarah Melvin added: "A vast number of schemes are currently navigating an uncertain global environment, and more and more are making the decision to outsource. Our problem-solving approach to fiduciary management has resonated very well with CAAPS and we are thrilled that they have chosen BlackRock as their partner to manage their growth portfolios."