AllianzGI appointed to manage London CIV’s first sub-fund

23 Nov 2015 AllianzGI appointed to manage London CIV’s first sub-fund

Courtesy of Institutional Asset Manager

AllianzGI has become one of the first investment managers to be appointed to the London Pension Collective Investment Vehicle (CIV).

The CIV will provide a structure through which the pension funds of London’s 32 boroughs and the City of London Corporation, which together have over £25 billion of assets under management, will be able to invest.

AllianzGI is one of just four asset managers that London Councils, which spearheaded the intra-borough collaboration that led to the creation of the CIV, has appointed to take part in the first tranche of fund launches designed for the new CIV. Allianz Global Investors has been selected to manage the London CIV’s first sub-fund, an active Global Equity Alpha sub-fund, managed by Lucy Macdonald.

The Global Equity Sub-Fund will launch with GBP510m of assets with contributions from three London boroughs, including the London Borough of Wandsworth. The London Pension CIV is expected to create economies of scale for London’s borough pension funds by allowing them to pool their assets. The Sub-Fund will be open for contributions from other London Boroughs wishing to participate in the strategy.

Lucy Macdonald, CIO Global Equities at Allianz Global Investors, says:

“We are delighted to be one of a very select group of managers chosen to work with the London CIV from launch. In an environment of ongoing financial repression, we are adamant that active management is more important than ever when it comes to delivering positive outcomes for pension fund members.”

Philip Dawes, Head of UK Institutional, says:

“We have worked very closely with London Councils since the CIV initiative was announced in 2013, sharing our investment expertise, understanding of the local authority environment as well as our ongoing commitment to active management. From infrastructure debt to global equities we continue to innovate and engage with clients in order to help deliver active returns for local government pension schemes. We look forward to working with the London Boroughs as we move through 2016 in order to help ensure the continued success of this market-leading initiative.”