London CIV has launched an alternative credit fund with initial assets worth £398m (€473m) from three seed investors.

Indirect exposure to a range of assets will be achieved by investing the fund in CQS’s credit multi-asset strategy, it said.

London CIV, which is the pooling vehicle for the capital’s 32 public pension funds, said CQS aimed to deliver stable returns while optimising yield within the sub-investment grade credit market.

The alternative credit fund is targeting a return of SONIA +4.5%, net of fees.

In a press release announcing the launch, London CIV said it had worked closely with CQS on ways to improve its environmental, social and governance processes. It said the CQS strategy was being classified as Article 8 under the EU’s sustainable finance disclosure regulation.

The pool also said it was “pleased” that CQS had signed up to the Net Zero Asset Managers initiative and that the manager was in the process of setting interim targets.

“I am very pleased we have launched the Alternative Credit Fund as it will play a part in meeting our own ambitious net zero targets, and those of the investors in this Sub-fund,”’ said Mike O’Donnell, chief executive officer of London CIV.

Last year the pool announced that it was committing to net-zero portfolio emissions by 2040, with interim targets including a 35% carbon intensity reduction by 2025 (relative to 2020) and 60% by 2030 across its fund range.

AP7 picks PPCmetrics to help with equity risk premia

Sweden’s AP7 has appointed Swiss consultancy PPCmetrics to help with a planned procurement of equity risk premia investment management.

The search was launched last November. Asked at the time how large the equity risk premia tender would be, and whether it would be a re-tender of existing mandates or an expansion of the current allocation to the investment type, Ingrid Albinsson, AP7’s chief investment officer, told IPE the pension fund could not yet provide an answer.

Swiss consultant seeks infrastructure manager for pension funds

Investment consultancy invalue ag has used IPE Quest to search for infrastructure asset managers on behalf of several Swiss pension funds.

According to search QN-2752, the firm is seeking fund managers to invest CHF30m (€28.7m) in infrastructure unlisted equity, either with a global or European focus.

Interested participants would need to state performance as of 30 September 2021 and should have at least CHF250m of assets under management for the stated asset class.

The tender notice also requires a preferred minimum of three years of track record.

The deadline to participate in the search has been set for 28 February at 5pm UK time.

The IPE news team is unable to answer any further questions about IPE Quest, Discovery, or Innovation tender notices to protect the interests of clients conducting the search. To obtain information directly from IPE Quest, please contact Jayna Vishram on +44 (0) 20 3465 9330 or email jayna.vishram@ipe-quest.com.

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