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


A changing DC market
In our latest Pensions Age video interview, Aon DC senior partner and head of DC consulting, Ben Roe, speaks to Laura Blows about the latest changes and challenges within the DC sector

Being retirement ready
Gavin Lewis, Head of UK and Ireland Institutional at BlackRock, talks to Francesca Fabrizi about the BlackRock 2024 UK Read on Retirement report, 'Ready or not. How are we feeling about retirement?’

Podcast: Who matters most in pensions?
In the latest Pensions Age podcast, Francesca Fabrizi speaks to Capita Pension Solutions global practice leader & chief revenue officer, Stuart Heatley, about who matters most in pensions and how to best meet their needs
Podcast: A look at asset-backed securities
Royal London Asset Management head of ABS, Jeremy Deacon, chats about asset-backed securities (ABS) in our latest Pensions Age podcast

Advertisement Advertisement