The £720m City of London Corporation Pension Fund has awarded IFM Investors a £45m infrastructure mandate.
The mandate will give the City of London exposure to a portfolio of core equity infrastructure assets in global developed markets in both its pension scheme and the £470m Bridge House Estates fund, which uses its income stream to maintain the City’s Thames bridges and to make charitable grants through its City Bridge Trust.
City of London Corporation corporate treasurer Paul Mathews said: “Infrastructure is an increasingly important asset class in portfolios, with its attributes for matching long-term liabilities particularly compelling. IFM Investors’ open-end fund structure and focus on investing in long-lived, core infrastructure really stood out for us, as did being able to invest in an existing portfolio of cash generating assets with exposure to the UK.”
IFM Investors executive director, business development Annabel Wiscarson added: “We look forward to working with the City of London Corporation, supporting its long-term investment objectives with our 18 years’ experience in managing infrastructure assets and delivering value to investors throughout market cycles. Institutional investors are reassessing their defensive asset allocations to achieve more diversification, and we see demand for infrastructure continuing to grow as investors become increasingly well-informed about the sector.”
Australia-based IFM is a global infrastructure manager owned by 30 not-for-profit pension funds. Its UK assets include a 35.5% stake in Manchester Airports Group, the largest UK-owned airport operator, which IFM Investors acquired in February 2013.
The City of London appointment follows a £35m mandate from Leicestershire County Council Pension Fund in January 2012.
The mandate comes as Industry Funds Management announced it had changed its name to IFM Investors to reflect the “strength and evolution of the firm”.
Chief executive Brett Himbury said of the name change: “Our shareholders had the foresight to establish a unique investor-owned model that is now a growing global company that has maintained its core purpose and values. Our new name is symbolic of our heritage, uniqueness, calibre of talent and the sophistication of our investments.”
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