Legal and General Investment Management has launched a range of secure income asset solutions aimed at UK defined benefit pension schemes looking for stable, long-term cashflows.
The Legal & General Secure Income Assets Fund has an open-ended pooled structure subject to a lock-in period and targets return of Gilts +2.5% per year over a rolling three-year period, from a diversified portfolio of secure income assets, including infrastructure debt, real estate debt and private corporate debt.
For those UK pension schemes seeking a more bespoke solution, five single strategies have also been launched as separate unit-linked life funds including a senior real estate debt fund, sub investment-grade infrastructure debt fund and an investment grade infrastructure debt fund.
“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,” said Stuart Hitchcock, head of portfolio management, private credit at LGIM Real Assets.
“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,” he added.