Aviva Investors has been appointed to manage London CIV’s new Inflation Plus Fund.
The fund, which aims to address cash flow and liability requirements for a group of London local authority pension funds, has been launched with an initial £107m from boroughs Bexley and Redbridge.
It is tasked with delivering consistent, stable, inflation-linked returns for member schemes by primarily targeting opportunities in long income real estate, including investing in long leases and ground rents.
It will also have the flexibility to invest across other asset classes such as infrastructure debt and real estate debt.
Kevin Corrigan, chief investment officer at London CIV, said: “Aviva Investors has a long track record across the real assets sector and strong origination capabilities.
“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.”
Mark Versey, chief investment officer, Real Assets, at Aviva Investors, added: “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.”
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