Rolls-Royce Pension Fund

Investment governance sits with the trustee board, chaired by Liz Airey. The board oversees strategy allocation across the fund’s defined-benefit and defined-contribution sections, supported by the in-house pensions team led by Group Head of Pensions Fiona Brown at Rolls-Royce. Individual investment and manager selection mandates are typically executed through external advisors and fund relationships rather than a dedicated internal investment staff.

The fund has pursued a systematic liability-hedging strategy through a series of bulk annuity transactions. Most recently, it completed a buy-in with Pension Insurance Corporation in May 2025, adding to earlier buy-in and buy-out agreements with Legal & General and Aviva. It has also employed a longevity swap with Deutsche Bank to transfer demographic risk off the scheme’s balance sheet.

Beyond its annuity contracts, the fund directly owns commercial and residential property assets, including The Gracechurch Centre in Sutton Coldfield, Maple Cross commercial developments, and a North American multifamily residential portfolio. The fund also has a mandate for venture capital, growth equity, and secondaries investing, though individual company holdings are not publicly disclosed.

No. The primary defined-benefit scheme is closed to employees who joined Rolls-Royce after 31 March 2007. Current and former employees outside that cohort participate in The Retirement Savings Trust, the fund’s defined-contribution arrangement. The closed status means the fund’s DB liabilities are mature and in run-off, which shapes its de-risking investment posture.

Rolls-Royce plc is the sponsoring employer of the pension fund. The fund is governed by an independent trustee board, but the sponsor retains influence through the Group Head of Pensions role and the obligation to fund any remaining defined-benefit shortfalls. The connection means the fund’s health is tied to the sponsor’s corporate credit profile, though the bulk annuity program increasingly insulates the scheme from that risk.

The Rolls-Royce Pension Fund is a signatory to the UN Principles for Responsible Investment and states adherence to the UK Stewardship Code. It holds memberships with the Pensions and Lifetime Savings Association and the Pensions Management Institute, suggesting an ESG integration approach consistent with UK pension industry standards, though it does not publicly disclose detailed stewardship reports or exclusion lists.

Separate charitable entities exist under the Rolls-Royce name, including Foundation Derbyshire — The Rolls-Royce Fund and the Rolls-Royce Foundation. These are distinct from the pension fund, which exists solely to provide retirement benefits. The pension fund’s assets are ring-fenced for member benefits and are not available for philanthropic spending by the sponsor or foundations.