BlackRock takes over £21.5bn British Airways pension pot

British Airways has appointed BlackRock to manage £21.5bn of its pension schemes’ assets, covering two of the UK’s largest defined benefit schemes.

BlackRock will manage assets within the Airways Pension Scheme and the New Airways Pension Scheme, which serve more than 85,000 members.

The pension funds had previously been managed by an in-house provider.

BA Pensions said it decided to enter into a partnership with the world’s largest asset manager to ‘better position the schemes for the future’, through gaining cost benefits, investment specialism and operational efficiencies.

The move is the largest handover of UK pension assets to an external asset manager.

Roger Maynard, chair of trustees for both pension funds, said the agreement was the ‘necessary next step’ in the evolution of the schemes as they look to enhance their respective investment strategies. 

‘In BlackRock, we have identified an asset manager that will ensure the continued focus on delivering enhanced oversight, investment management and long-term value for the Schemes in the interests of our members. We look forward to working with BlackRock in the years ahead,’ he said.

In April, BlackRock surpassed $9tn in assets under management, an increase from $6.5tn a year ago.

Source: City Wire

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