London CIV launches real assets fund

The London Collective Investment Vehicle has launched a real assets fund aiming to deliver inflation-linked returns, with seed money from the boroughs of Redbridge and Bexley.

The fund seeks to deliver stable income by primarily investing in real estate, 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 to source the best relative value opportunities.

“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,” said London CIV interim chief investment officer, Kevin Corrigan.

Aviva Investors manages the fund, which has been initially seeded with £107 million.

Mark Versey, CIO, Real Assets, at Aviva Investors, 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.”

“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,” Versey added.