On the go: The £1.5bn Smart Pension master trust has introduced private market illiquids into its default fund after developing a solution in partnership with Natixis Investment Managers.
The new £100m MV Dual Credit Fund represents 10 per cent of the default fund’s assets, Smart Pension told MandateWire.
The fund blends European leveraged loans managed by MV Credit with a global multi-asset credit strategy by Loomis Sayles, both subsidiaries of Natixis.
The solution gives the master trust enough liquidity to meet its needs, while allowing access to private market credit. It is part of a longer-term strategy for Smart Pension to develop and diversify its default fund.
Paul Bucksey, managing director of Smart Pension, said incorporating the MV Dual Credit Fund into the Smart Pension default fund “opens up illiquids to mass market defined contribution in an accessible and affordable way”.
He added: “We believe this should improve returns and reduce volatility for members of the master trust.”
Bucksey also revealed that the master trust has recently tilted its default growth fund to be more focused on responsible investing.
“We are excited that this next phase of development incorporates access to private markets in what will be a first for a private sector master trust in the UK,” he commented.
Smart Pension is a signatory to the UN’s Principles for Responsible Investment.
This article originally appeared on Mandatewire.com
