Smart Pension Incorporates Private Market Illiquids in Default Strategy
New solution developed in partnership with Natixis Investment Managers opens up the benefits of illiquids for Smart Pension’s DC members, through the new MV Dual Credit strategy.
Smart Pension, the award-winning master trust, has today announced that it has been working with Natixis Investment Managers, one of the world’s largest asset managers by AUM1 to incorporate private markets illiquids into the Smart Pension default fund. The solution, which was developed by Natixis IM in partnership with Smart Pension, makes the most of Natixis IM’s multi-affiliate model allowing bespoke combined solutions to be brought to the market in a cost effective and accessible way.
The newly developed MV Dual Credit strategy blends European leveraged loans managed by MV Credit with a global multi asset credit strategy from Loomis Sayles to deliver a solution that 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 the Smart Pension Master Trust to develop and diversify the default fund so that it meets member needs now and in the future.
Paul Bucksey, Managing Director of the Smart Pension Master Trust, said:
“We are excited to be working with Natixis to incorporate the MV Dual Credit strategy into the Smart Pension default and open up illiquids to mass market DC, in an accessible and affordable way. We believe this should improve returns and reduce volatility for members of the master trust, and is part of our overall plan to ensure that our default investment strategy delivers really great outcomes for our members.”
“We have recently tilted our default growth fund to be more focussed on responsible investing, and 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.”
Nick Groom, Head of UK DC Sales & Strategy at Natixis Investment Managers, added:
“We are delighted to be involved with Smart Pension in building one of the very first private market solutions for the DC market. The fund incorporates two of our specialist affiliates, MV Credit for structuring and access to private credit, and Loomis Sayles to provide the liquidity through its multi-asset credit strategy.”
“Bringing liquid and illiquid credit together into one open-ended affordable solution for the UK DC pensions market was the objective, and we believe that this innovative strategy is what the market is looking for. We are pleased to work with Smart Pension and their platform partners, L&G, to see the strategy go live.”
The MV Dual Credit strategy will be seeded with around £100m of assets from the Smart Pension default fund. Smart Pension is the cornerstone investor, but the fund will be accessible to other UK pension schemes opening up opportunities for these schemes to access private markets illiquids.For further reading:
About MV Credit:
MV Credit is an independently managed private credit firm founded in 2000. One of the first private credit firms to be established in Europe, MV Credit possesses the longest established management team in the private credit space, with a senior team who has on average over twenty years’ experience. Since inception MV Credit has invested circa €5bn in debt financing deals, building over time strong long-term relationships with reputable private equity sponsors. MV Credit invests in senior and subordinated debt across Europe, targeting non-cyclical, defensive industries and regions where the team have a strong understanding. The firm’s deep experience enables it to add value by providing tailored financing solutions to high-quality businesses, alongside adding value through active engagement.
About Loomis Sayles:
Since 1926, Loomis, Sayles & Company has helped fulfill the investment needs of institutional and mutual fund clients worldwide. The firm’s performance-driven investors integrate deep proprietary research and integrated risk analysis to make informed, judicious decisions. Teams of portfolio managers, strategists, research analysts and traders collaborate to assess market sectors and identify investment opportunities wherever they may lie, within traditional asset classes or among a range of alternative investments. Loomis Sayles has the resources, foresight and the flexibility to look far and wide for value in broad and narrow markets in its commitment to deliver attractive sustainable returns for clients. This rich tradition has earned Loomis Sayles the trust and respect of clients worldwide, for whom it manages £234.9 billion** in assets (as of December 31, 2020).
**Includes the assets of Loomis, Sayles & Co., LP, and Loomis Sayles Trust Company, LLC.
Loomis Sayles Trust Company is a wholly owned subsidiary of Loomis, Sayles & Company, LP.
MV Credit Partners LLP
Registered Number : OC397214
Authorised and Regulated by the Financial Conduct Authority (FCA)
45 Old Bond Street
London W1S 4QT
www.mvcredit.com
Loomis, Sayles & Company, L.P.
A subsidiary of Natixis Investment Managers,
Investment adviser registered with the U.S. Securities and Exchange Commission(IARD No. 105377)
One Financial Center,
Boston, MA 02111, USA
www.loomissayles.com
Natixis Investment Managers
RCS Paris 453 952 681
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www.im.natixis.com
This communication is for information only and is intended for investment service providers or other Professional Clients. The analyses and opinions referenced herein represent the subjective views of the author as referenced unless stated otherwise and are subject to change. There can be no assurance that developments will transpire as may be forecasted in this material.
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