Aviva Investors has been appointed by London CIV, the Collective Investment Vehicle for the group of London Local Authorities (LLA) Pension Funds, to manage its newly-created Inflation Plus Fund.
The Fund will primarily target opportunities in real estate long income, including investment in long-lease and ground rents. It will also have the flexibility to invest across other asset classes such as infrastructure debt and real estate debt, in order to source the best relative value opportunities.
Initially launched with £107 million from London Borough of Bexley and the Borough of Redbridge, the Fund is the only strategy on the London CIV platform which seeks to address cashflow and liability requirements for member schemes, and will draw on resources from Aviva Investors’ £46 billion Real Assets business.
“We are proud to have been selected by London CIV to manage its Inflation Plus Fund. 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,” said Mark Versey, CIO, Real Assets, at Aviva Investors.
“Aviva Investors has a long track record across the real assets sector and strong origination capabilities, and we are delighted to work with them on this fund. 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,” added Kevin Corrigan, CIO at London CIV.
