Bermuda-based asset manager Fidelity International has secured a £40 million mandate from the London Borough of Bromley Pension Fund to seed the launch of its London Bond Strategy.
The launch comes as policymakers encourage pension schemes to play a greater role in supporting UK economic growth and as Local Government Pension Schemes (LGPS) increasingly seek opportunities to invest closer to the communities they serve.
Fidelity’s London Bond Strategy provides a liquid, investment-grade credit solution that enables London borough pension funds to invest in organisations that contribute to London’s economy while maintaining a disciplined approach to risk and return objectives.
At least 80% of the portfolio will be invested in investment-grade issuers that play a vital role in London’s economy and infrastructure, creating a diversified credit portfolio. The investment universe is focused on two categories of issuers: Core London Assets, organisations that support London’s essential physical and social infrastructure, and London Economic Anchors, major employers and businesses that make a significant contribution to the capital’s economic activity.
The strategy is managed by Ian Fishwick, alongside co-portfolio managers Kris Atkinson and Shamil Gohil, within Fidelity International’s sterling credit platform. It draws on the expertise of Fidelity’s global fixed income team, which manages around US$100 billion across investment-grade credit, high yield, sovereign debt, emerging market debt and multi-sector fixed income strategies.
Tom Jeffery, Head of EMEA Institutional, Fidelity International, said: “Local Government Pension Schemes are increasingly looking for investment solutions that deliver attractive risk-adjusted returns while investing in the communities they serve. The London Bond Strategy has been designed to meet that demand through a diversified investment-grade credit portfolio focused on organisations that support London’s economy.”
Cllr Sumeet Jalan, Chairman of Bromley’s Pension Investment Committee, added: “Our focus is on delivering strong long-term outcomes for our Pension Fund members through disciplined investment and careful stewardship of their assets. We believe Fidelity’s London Bond Strategy complements that approach by providing access to a diversified investment-grade credit portfolio focused on organisations that play an important role in London’s economy. Fidelity has been a long-standing investment partner to the Fund, and we are pleased to have worked closely with them on the development of the London Bond Strategy and to support its launch.”
