BlackRock has secured a $7.1 billion (£4bn) mandate from a UK pension scheme.

The investment manager will provide asset allocation and manager-selection decisions across all asset classes for the Civil Aviation Authority Pension Scheme (CAAPS), a defined benefit scheme for workers in the aviation industry.

BlackRock will build custom portfolios for the two constituents of the scheme: the Civil Aviation Authority and National Air Traffic Services. It will also provide trustees with training, guidance and transition management services.

CAAPS has some 14,000 members and $12.8 billion (£7.25bn) of assets.

Independent chair of CAAPS Joanna Matthews said after a thorough review of the fiduciary manager market with the help of an independent consultant IC Select, BlackRock was selected as it is “a good cultural fit and they clearly demonstrated the strength of their investment offering and the scale and depth of their resources”.

Sarah Melvin, head of UK at BlackRock, commented that the fund manager is looking forward to helping members achieve their long-term investment goals.

“A vast number of schemes are currently navigating an uncertain global environment, and more and more 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,” Melvin said.

She added that BlackRock’s platform Aladdin will play a central role in understanding the risk and return characteristics driving funding levels, hence build portfolios with more stable returns for CAAPS members.

Source: Financial Standard

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