TFL allocates £3.8 billion to LDI and passive mandates

The £7.3 billion Transport for London (TFL) Pension Fund has selected BlackRock for a £3.8 billion mandate, which covers its liability-driven and passive equity portfolios.

The LDI mandate is worth £1.6 billion and protects the funds from market uncertainty, including inflation, interest rate and equity volatility. TFL’s £2.2 billion passive equity portfolio is invested in a range of index funds. The pension fund also holds multi-asset index funds, enhanced index strategies, bonds, global equities and alternatives. The TFL fund has also invested £100 million into the BlackRock Renewable Income UK Fund, which invests in onshore wind, offshore wind and solar projects, as part of its alternatives allocation.

TFL Pension Fund fund secretary, Stephen Field, commented: “We have a duty to our fund members to ensure we employ the best investment solutions and consider all possible market risks and opportunities. BlackRock is a key partner, helping us to navigate changing market conditions to deliver the outcomes we require for our members.”