The London CIV, the asset pool for 33 London borough pension funds, has announced the launch of its first fixed income fund, a multi-asset credit fund, which has been seeded by four London local authorities with an initial investment of £308 million.
The fund will initially invest with the CQS Credit Multi Asset Fund. Larissa Benbow, head of fixed income at the London CIV, commented: “The LCIV MAC fund offers LLAs an excellent and cost-efficient way to access a broad range of credit strategies in a single product. This will not only allow them to diversify their portfolios in times of greater market uncertainty but also to gain exposures into investments such as loans and other credit opportunities, which not all boroughs have historically had access to. As we continue to deliver investment opportunities and greater cost efficiencies to LLAs, we are delighted to announce this launch and bring the first fixed income product in an expanding LCIV range to our members.”
Benbow added that the London CIV has other fixed income offerings in the pipeline, including global bonds, private debt, liquid loans and long/short multi-asset credit. The new launch means that the London CIV now has total assets under management and oversight of more than £15 billion, more than 40% of London’s total assets under management. Further strategies in equities, fixed income, infrastructure, property and private equity are planned to enhance the current range of offerings.