The Rolls-Royce Retirement Savings Trust, in its recently published “Trustee’s annual report and financial statements for the year ended 5 April 2025,” has disclosed several key investment decisions and insights into its future intentions.
Self-Select Fund Range Expanded
For the fiscal year ended April 5, 2025, the Trust expanded its self-select investment fund range. The new funds added include the Aviva My Money BlackRock Overseas Government Bond Index Tracker Fund, Aviva My Money BlackRock ESG Overseas Corporate Bond Index Fund, Aviva My Money BlackRock Growth Fund, and Aviva My Money BlackRock Retirement Fund. The latter two funds are also utilized by Aviva to construct the Target Date Fund (TDF) vintages for the default investment strategy. This expansion aims to provide members with more options to design and manage their own investment strategies. (Source: Trustee’s annual report and financial statements for the year ended 5 April 2025, page 9)
Climate Target Progress and Future Monitoring
The Trust has made progress towards its greenhouse gas emission reduction target. As of December 31, 2024, the Trust’s greenhouse gas emissions, measured by Weighted Average Carbon Intensity (WACI), have reduced by approximately 52.7% compared to the 2019 baseline. This surpasses the initial target of a 50% reduction by 2030 for all listed equity and corporate bond mandates within the default investment arrangement, covering Scope 1 and 2 emissions. The Trustee plans to retain this target in the short term to ensure sustained progress and to further understand the drivers behind the changes in metrics. The Trust also intends to work with underlying investment managers to develop a decarbonization plan focusing on stewardship, attribution analysis, and engagement with high-WACI contributors. The appropriateness of the target will be reviewed again in the medium term. (Source: Trustee’s annual report and financial statements for the year ended 5 April 2025, pages 79, 102, 103, 104)
Illiquid Investments Policy Maintained
The Trustee maintains its policy regarding illiquid investments. The Trust’s default arrangement does not include direct allocation to illiquid investments or to investments via a collective investment scheme. The Trustee considers direct investment into an illiquid asset fund as not currently suitable for members of the Trust, despite recognizing the potential for higher returns and diversification benefits. This position was reaffirmed during the 2024 self-select review, and the policy will remain under review. (Source: Trustee’s annual report and financial statements for the year ended 5 April 2025, page 49, 67)
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