The London Local Authorities (LLA) Pension Funds’ collective investment vehicle, London CIV, has chosen Aviva Investors to manage its newly created Inflation Plus Fund.
The fund has been initially launched with £107m from London Borough of Bexley and the Borough of Redbridge, and is the only strategy on the London CIV platform which seeks to address cashflow and liability requirements for member schemes.
It seeks to deliver consistent, stable and inflation-linked returns by investing in a diverse portfolio, primarily targeting opportunities in real estate long income such as long-lease and ground rents.
The fund will also enjoy the flexibility to invest across other asset classes such as infrastructure debt and real estate debt, in order to source the best relative value opportunities.
Aviva Investors chief investment officer, Mark Versey, said: “We are proud to have been selected by London CIV to manage its Inflation Plus Fund.
"In this challenging investment environment, predictable, inflation-linked returns offer an attractive defensive quality to portfolios, making long income a natural destination for pension schemes as they look to reduce risk.
“Our hope is that other London Borough Pension Funds will follow Bexley and Redbridge into the fund and we anticipate it growing significantly over time. We look forward to helping this group of local authorities meet their investment objectives and cashflow requirements on behalf of their members.”
London CIV chief investment officer, Kevin Corrigan, added: “Aviva Investors has a long track record across the real assets sector and strong origination capabilities, and we are delighted to work with them on this fund.
"The demand for alternative income from our investors will likely increase, particularly given the current environment so this is an important addition to the London CIV suite of funds.”
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