Corporate Adviser
  • Content Hubs
  • Magazine
  • Alerts
  • Events
  • Video
    • Master Trust Conference 2024 videos
  • Research & Guides
  • About
  • Contact
  • Home
  • News
  • In Depth
  • Profile
  • Pensions
    • Auto-enrolment
    • DB
    • DC
    • Defaults
    • Investment
    • Master Trusts
    • Sipps & SSAS
    • Taxation
  • Group Risk
    • Group Life
    • Group IP
    • Group CIC
    • Mental Health
    • Rehab
    • Wellbeing
  • Healthcare
    • Musculoskeletal
    • Mental Health
    • IPT
    • Wellbeing
    • Trusts
    • Cash Plans
  • Wellbeing
    • Mental Health
    • Health & Wellbeing
    • Financial resilience
  • ESG
No Result
View All Result
Corporate Adviser
No Result
View All Result

LGIM launches private market fund range for DB schemes

Strategy will access a range of securities including infrastructure debt and real estate debt

by Emma Simon
August 3, 2020
Share on FacebookShare on TwitterShare on LinkedInShare on Pinterest

Legal & General Investment Management (LGIM) has launched a new secure income funds for DB schemes, which invest in  range of assets including infrastructure debt, real estate debt and private corporate debt.

DB pension can select the Secure income Asset Fund combines these various strategies into an open-ended pooled structure, subject to a lock-in period.

The fund targets stable long-term cashflows, and aims to deliver a return of gilts +2.5 per cent over a rolling three year period. 

For UK pension schemes seek a more bespoke solution, five single strategies have been launched as separate unit-linked life funds. These are: 

  • Legal & General Senior Real Estate Debt Fund
  • Legal & General Investment Grade Infrastructure Debt Fund
  • Legal & General Investment Grade Private Corporate Debt Fund
  • Legal & General Sub-Investment Grade Infrastructure Debt Fund
  • Legal & General Sub-Investment Grade Private Corporate Debt Fund.

All the Funds within the Secure Income Asset Solutions range have an open-ended pooled structure subject to a lock-in period, which enables clients to invest in secure income assets without facing any additional governance burden. This is particularly relevant for smaller schemes that may find such asset classes ordinarily out of reach due to the higher minimum investment and governance required. The flexibility of the offering means it can be adapted to suit clients’ liability hedging, cashflow matching and liquidity purposes.

Through its Real Assets platform, LGIM is one of the UK’s largest real assets managers, actively investing in, and managing, assets across commercial, operational and residential property sectors, as well as infrastructure, real estate, corporate and alternative debt.

LGIM head of UK institutional clients, Mark Johnson says: “The launch of the Secure Income Assets Fund meets the growing demand from our UK DB scheme clients for innovative solutions that deliver reliable income. 

“Investing long-term capital in secure income assets offers a compelling opportunity to generate these cashflows with attractive risk-adjusted returns and the potential for long term owners of capital – insurers and pension schemes – to effect real and lasting change.”

Stuart Hitchcock, head of portfolio management, private credit, at LGIM Real Assets, said: “For investors with a long term view, secure income assets are a core part of a cashflow-driven investment strategy, delivering a breadth and depth of universe not available in the public market. 

“By negotiating better structural protections than public market equivalents, we aim to provide improved downside protection, reduced valuation volatility and lower correlation with traditional traded assets.

“With £14 billion AUM, the Private Credit business has seen considerable success across corporate, infrastructure and real estate debt. We have invested in some of the UK’s largest economic and social infrastructure, alongside renewable projects and real estate — our focus is to deliver significant financing to both the public and private sector, in order to serve our investment clients’ cash flow needs, while  making a positive social impact.”

VIDEO FROM ROYAL LONDON


Find out more about how to support the switching of a workplace pension

Corporate Adviser Special Report

REQUEST YOUR COPY

Most Popular

  • HMRC research raises spectre of Budget cuts to salary sacrifice

  • NatWest Cushon spells out path to £25bn

  • Isio appoints Secondsight MD as client experience director

  • Govt gives green light on bulk transfers to ‘mega funds’ as part of widespread pension reforms

  • Smart Pension to invest 15pc of default into private markets

  • Consultants escape regulation but providers face new disclosure hurdles: Pension Investment Review

Corporate Adviser

© 2017-2024 Definite Article Media Limited. Design by 71 Media Limited.

  • About
  • Advertise
  • Privacy policy
  • T&Cs
  • Contact

Follow Us

X
No Result
View All Result
  • Home
  • News
  • In Depth
  • Profile
  • Pensions
    • Auto-enrolment
    • DB
    • DC
    • Defaults
    • Investment
    • Master Trusts
    • Sipps & SSAS
    • Taxation
  • Group Risk
    • Group Life
    • Group IP
    • Group CIC
    • Mental Health
    • Rehab
    • Wellbeing
  • Healthcare
    • Musculoskeletal
    • Mental Health
    • IPT
    • Wellbeing
    • Trusts
    • Cash Plans
  • Wellbeing
    • Mental Health
    • Health & Wellbeing
    • Financial resilience
  • ESG

No Result
View All Result
  • Home
  • News
  • In Depth
  • Profile
  • Pensions
    • Auto-enrolment
    • DB
    • DC
    • Defaults
    • Investment
    • Master Trusts
    • Sipps & SSAS
    • Taxation
  • Group Risk
    • Group Life
    • Group IP
    • Group CIC
    • Mental Health
    • Rehab
    • Wellbeing
  • Healthcare
    • Musculoskeletal
    • Mental Health
    • IPT
    • Wellbeing
    • Trusts
    • Cash Plans
  • Wellbeing
    • Mental Health
    • Health & Wellbeing
    • Financial resilience
  • ESG

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.