Willis Towers Watson has launched Euro Secure Income Fund (ESIF) after a success of secure income fund (SIF), which reached £1bn of commitments.
SIF, available to Defined Benefit (DB) pension schemes in the UK, was launched in March 2017 to meet institutional demand for a product offering long-term sustainable income and which could help alleviate liability mismatch.
ESIF is designed to help Euro-denominated pension funds access secure income assets and is available to investors in Europe and elsewhere. It will allocate its investments across Europe, principally focusing on the Netherlands, Germany, Ireland, France and Spain.
Like the SIF, the new strategy will invest across low risk, cash generative strategies in infrastructure, real estate and real asset debt through funds, joint ventures, co-investments, secondary deals and more.
A critical element of the SIF's success has come through sustainable investing, a commitment to which the ESIF will retain. The investment team identifies opportunities which will make a demonstrable positive societal and environmental impact alongside strong financial returns, such as social housing, renewable energy and sustainable agriculture, which all feature in the fund.
The fund will be managed by portfolio manager Duncan Hale, who has been managing SIF.
Among the SIF's real estate investments, for example, are properties specifically designed for people with physical or mental disabilities, as well as emergency accommodation, which was added to the fund in Q3 of 2018.