USS launches its first asset-backed securities mandate

Universities Superannuation Scheme (USS) has launched its first mandate investing in asset-backed securities (ABS).

The scheme stated that the mandate was likely to exceed £1bn over “the next couple of years”.

Its first mandate will be focused on investment-grade, publicly listed securities.

The move come just under a year since USS’s wholly owned investment management arm, USS Investment Management (USSIM), appointed Janet Oram as its head of ABS.

USS said that Oram’s appointment underlined USSIM’s commitment to developing its in-house fixed income and treasury capability, and supporting its increasing focus on liability-driven investing.

“It’s an interesting time to be launching a new mandate,” commented Oram.

“Subject to careful analysis, we feel there are likely to be some very good opportunities over the coming months in particular.

“Not only does the ABS market offer an opportunity to broaden the scheme’s investment universe in sterling credit – reducing FX hedging costs – it also creates additional high-grade capacity in a sector that has historically demonstrated strong relative value.

“AAA-rated securities within the mandate will also provide flexibility for collateral management in the LDI book.”

Following this mandate launch, USS will partner with USSIM’s in-house private markets team in seeking a more yield-seeking mandate.

    Share Story:

Recent Stories

Making pension engagement enjoyable through technology
Laura Blows speaks to Nick Hall, business development director and Chartered Financial Planner at UK-based Wealth Wizards about the opportunities that technology provides for increasing people’s engagement with pensions and increasing their retirement wealth. Please click here for an edited write-up of the video

ESG & DC – creating the right tools
In the latest of our series of Pensions Age video interviews Francesca Fabrizi, Editor in Chief of Pensions Age is joined by Manuela Sperandeo, Head of Sustainable Indexing EMEA, BlackRock and Mark Guirey, Executive Director, Asset Owner and Consultant Coverage - MSCI to discuss some key trends of ESG investing among UK pension funds today. Please click here for an edited write-up of the video

Savings and finance at retirement
Laura Blows is joined by Claire Felgate, Head of Global Consultant Relations, UK, at BlackRock, to discuss savings and finance at retirement. Please click here for an edited write-up of the video

Global sustainable credit
Laura Blows speaks to Royal London Asset Management senior fund manager, Rachid Semaoune, about global sustainable credit
Global equities and transition investing
Pensions Age editor, Laura Blows speaks to Royal London Asset Management equity investment director, Jonathan Price, about transitioning to sustainable investments within global equities

Advertisement Advertisement Advertisement