News in brief - 18 December 2020

The London Fund has secured a £100m investment from the London Pensions Fund Authority.

This was announced by fund partners Local Pensions Partnership Investments, London CIV and the London Pensions Fund Authority, who joined together to create a London-focused investment fund that aims to invest in the city through a focus on developing housing and infrastructure which will improve the quality of life for London communities. It is intended that the fund will focus on investment opportunities in residential property and affordable housing, community regeneration, digital infrastructure, and clean energy. A joint statement from Local Pensions Partnership CEO, Chris Rule and London CIV CEO, Mike O’Donnell, said: “We are pleased to be part of one of the first partnerships between LPGS pool companies, bringing together investment, risk management and stewardship expertise.”

Fidelity International has launched its Investment Pathways solution for non-advised drawdown customers.

The solution is part of an initiative from the Financial Conduct Authority that is designed to ensure that anyone entering pension drawdown without taking financial advice has access to simple, good-value investment strategies that meet a range of different retirement objectives. Fidelity’s Investment Pathways seeks to help customers select one of four options for how customers might want to use their drawdown pot over the next five years by presenting them with real-life objectives, with the goal of helping them to choose investment solutions which align to their retirement goals. Fidelity head of pension products, James Carter, said: “There is a real flexibility in the way that the pathways have been designed. For example, if a customer’s circumstances or plans have changed since they chose their Investment Pathway, they can change their investments at any time as they make use of the full range of income options available in Fidelity’s pension plans.”

Legal & General Investment Management (LGIM) launched a tilted climate transition index equity fund.

The FTSE TPI Global (ex Fossil Fuels) Equity Index Fund, which is for both defined benefit and defined contribution pension investors, tracks a range of global and diversified securities, weighted according to the risks and opportunities arising from the worldwide transition to a low-carbon economy. The fund excludes fossil fuel, tobacco, controversial weapons and UN Global Compact violators. Its constituents are adjusted based on their fossil fuel reserves, carbon emissions and green revenues, as well as through analysis of how the world’s largest and most carbon intensive public companies are managing the climate transition. LGIM head of institutional clients, Mark Johnson, said: “This fund serves to meet the needs of investors who are looking to reduce or remove their portfolios’ exposure to companies lagging on climate factors as well as other social considerations.”

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