Aviva Investors has won a mandate to manage a strategy designed to make “inflation-linked” returns on behalf of London CIV, an investment platform for London Local Authorities pension funds.
Taking a diversified approach, the fund targets potential long-term real estate opportunities such as long-lease and ground rents, as well as infrastructure debt and real estate debt.
Mark Versey, chief investment officer of the firm’s real assets arm, said: “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.”
The fund has been hailed as “the only strategy” on the London CIV platform which aims to address cashflow and liability requirements for member schemes.
According to Kevin Corrigan, CIO at London CIV, Aviva Investors was selected for the mandate due to its track record in the sector.
“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,” he said.
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