Royal London Asset Management has launched a Buy & Maintain Credit Pooled Pension Fund to provide a bespoke solution for pension fund clients, Shalin Shah has announced.
The fund, which will be managed by Mr Shah, will look to minimise the frequency and impact of defaults while targeting an attractive risk adjusted yield.
He said this should deliver robust long-term cash flows for investors within the pension funds, and therefore they will benefit from the matching nature of the asset class.
To achieve its objectives, he will invest in a diversified portfolio of predominantly Sterling denominated investment grade debt, with a bias towards bonds that offer genuine and protective credit enhancements.
Mr Shah said: “Exploiting the inefficiencies in credit markets is central to RLAM’s investment process and our buy & maintain strategy makes this relevant to the needs of pension schemes. The new fund creates a solution suited to the needs of other, potentially smaller, pension schemes.”
With an initial investment from existing client Volvo Corporate Trustee, the fund is based on its buy and maintain strategy, extended to offer a pooled solution for pension fund clients - large or small - looking to gain exposure to credit bond assets.
