The London Collective Investment Vehicle will allocate to a CQS strategy as part of its new multiasset credit allocation.
LCIV is a £15 billion ($19.9 billion) collective investment vehicle for London's 32 local authority pension funds. The assets represent about 40% of those plans' total assets.
The allocation is part of LCIV's multiasset credit strategy, the first of the pool's fixed-income strategies, said a news release by LCIV. The pool has secured £308 million in investments from four London local authorities for the multiasset credit strategy. The allocation to CQS could not be learned by press time.
Other new fixed-income strategies that will be introduced in the future for LCIV include global bonds, private debt, liquid loans and long/short multiasset credit.
The LCIV offers local authority funds "an excellent and cost-efficient way to access a broad range of credit strategies in a single product," said Larissa Benbow, LCIV head of fixed income, in the release. "This will not only allow them to diversify their portfolios in times of greater market uncertainty but also to gain exposures into investments such as loans and other credit opportunities, which not all boroughs have historically had access to."
A spokeswoman could not immediately respond to questions by press time.