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LONDON—Rolls-Royce Holdings PLC named the representative of an activist investment fund to its board on Wednesday, though the British engine-maker vowed to stick to its current strategy.

The group, one of the main suppliers of aero-engines for plane makers Airbus Group and Boeing Co., said Bradley Singer, the chief operating officer of U.S. firm ValueAct, will join as a director with immediate effect.

ValueAct last year became Rolls-Royce's largest shareholder and now holds a 10.8% stake in the company.

Rolls-Royce Chairman Ian Davis said the presence of an activist investment-fund in the boardroom won't trigger another review of group strategy. Rolls-Royce is committed to being a "diversified engine and power-systems business," Mr. Davis said.

The ValueAct representative would serve on the board as long as ValueAct remained a major shareholder in the company, he said.

The appointment comes as Rolls-Royce Chief Executive Warren East is set to complete a strategic review midsummer, Mr. Davis said. It could lead to some disposals, though Mr. East has signaled that was no plan for a thorough reshaping of Rolls-Royce's portfolio. As well as jet engines, the group makes engines and power turbines for the marine, defense, and energy sectors.

Mr. East recently completed an operational review that has led to a streamlining of the organization and job cuts to restore competitiveness.

Rolls-Royce has struggled under a series of profit warnings and last month announced the first dividend cut in more than 20 years. The company has seen demand weaken for some of its most profitable products. The sharp drop in oil prices also has hit earnings at its marine and power-systems operations.

The appointment comes after months of talks between Rolls-Royce and ValueAct which Mr. Davis characterized as "constructive." He said Mr. Singer would strengthen the company's ability to deal with U.S. investors and bolsters its financial know-how. Mr. Singer previously was Chief Financial Officer of Discovery Communications and American Tower Corp.

Mr. Davis said he consulted with other investors before Mr. Singer was named to the board. Most backed the move. A small number of British investors indicated some reluctance, he said.

Mr. Singer also joins the Rolls-Royce board's science and technology committee.

(END) Dow Jones Newswires

March 02, 2016 04:15 ET (09:15 GMT)

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