The London Pension Collective Investment Vehicle (CIV) has appointed Allianz Global Investors (AllianzGI) to become one four asset managers responsible for its new asset management strategy.
The appointment is part of a move by London boroughs and the City of London Corporation to pool its £25bn of assets, which are currently being managed by 90 funds into just five or six funds.
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 £510m of assets with contributions from three London boroughs, including the London Borough of Wandsworth.
Lucy Macdonald, CIO Global Equities at Allianz Global Investors, said: “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 adds: “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.”