The pension fund for the London borough of Haringey has invested £45m (€53m) in The London Fund in a second close of the housing and infrastructure-focussed fund launched by UK local government pensions scheme (LGPS) investment pools last year.
Haringey’s investment takes total committed assets to the fund to £195m, following £100m in seed investment from the London Pensions Fund Authority (LPFA) in 2020, and a £50m top-up in the first quarter of 2021.
London CIV and Local Pensions Partnership Investments (LPPI) are the two LGPS investment pools behind The London Fund. They are targeting £300m for the fund.
LPFA is a 50% shareholder of the Local Pensions Partnership and its investment assets are pooled via LPPI together with those of non-London funds Lancashire County Pension Fund and the Royal County of Berkshire Pension Fund.
For Mike O’Donnell and Chris Rule, CEOs of London CIV and LPPI, respectively, securing an investment from Haringey Pension Fund, which is a client of London CIV, “is a really positive moment”, with other London CIV clients funds in discussions about allocating to The London Fund.
“The London Fund is a unique opportunity to generate risk-adjusted returns for client funds like Haringey, while simultaneously delivering positive ESG outcomes to London communities,” they said in a joint statement.
Councillor Yvonne Say, chair of Haringey combined pensions committee and board, said the investment in The London Fund showed that the pension fund was committed to investing responsibly.
“This investment will improve our ability to pay our members pensions by providing stable long-term cashflows whilst having a positive impact on the lives of Londoners,” she added.
The London Fund focuses on investments in the City of London, the 31 London boroughs and the immediate surrounding areas, in assets such as residential property – specifically build-to-rent – and affordable housing, community regeneration projects, and infrastructure including digital infrastructure and clean energy.
The fund aims to provide investors with sustainable long-term risk-adjusted returns and generate positive social and environmental outcomes for residents of the UK capital.
By pooling their resources and networks, London CIV and LPPI expect to have access to a greater range of investment opportunities for The London Fund than would be available to either entity acting alone.
The Haringey pension fund is one of 32 London pension funds that are the shareholders and clients of London CIV. As at 30 June 2021, London CIV’s assets under management stood at £13.5bn via a range of 19 different investment fund offerings.