Willis Towers Watson Investments’ secure income fund has received £1bn (€1.15bn) of commitments in the UK, the manager said as it announced the launch of a new fund to the broader European market.
In March 2017, the Towers Watson Secure Income Fund (SIF) was created to meet institutional demand for a product offering long-term sustainable income and which could help alleviate liability mismatch.
SIF was available to defined benefit pension schemes in the UK.
The manager said as a result of the SIF’s fundraising success, it has launched the Towers Watson Euro Secure Income Fund (ESIF).
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, the manager said.
Like the SIF, it 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.
Through sustainable investing, SIF’s real estate investments include properties specifically designed for people with physical or mental disabilities, as well as emergency accommodation.
Duncan Hale, a portfolio manager at Willis Towers Watson for the SIF and ESIF, said: “We launched our secure income fund to give pension schemes access to a strategy that was cash-flow generative, allowing them to more effectively match their liabilities, but that also had sustainable investment at its core.
“After two years, we’re delighted by the interest that the fund has generated and we’re looking forward to broadening access to this approach through the launch of the Euro Secure Income Fund.”
