Willis Towers Watson has launched a new fund for institutional investors called the Secure Income Fund.
The consultancy, which recently launched a low-cost asset management marketplace, said that the new fund provided institutional investors with an inflation-linked cash flow.
The fund's goal is to generate a better risk-adjusted return than investment-grade credit and index-linked gilts.
To achieve this investments within the fund encompass a wide range of strategies across real estate, infrastructure, renewable energy and real asset debt and uses all implementation options including secondaries and co-investments.
Commenting on the launch, Global Head of Real Assets at Willis Towers Watson, Karen Dolenec, said: ‘With many institutional investors continuing to prioritise inflation-linked income, the real yields available from traditional assets have been squeezed.'
'Clients have been telling us about the challenges which they have faced in establishing a presence in the alternative area of secure income investments. The key benefit of the fund is that it offers a simple solution for individual clients to benefit from our sourcing skills in an attractive but difficult to access opportunity set.’
She added that WTW’s scale and approach let it develop strong relationships with a large manager universe.
‘We often work with members of the manager community to create new products meaning that we are at the forefront of innovation while securing capacity and preferential terms.’
Willis Towers Watson has been investing in secure income assets (SIAs) since 2006. It says that SIAs provide an attractive cash flow profile, with an expected long term yield of 4-5% a year, while also adding diversification to a portfolio.
The consultancy’s investment business has almost €82 billion of assets under management while advising on over €2.15 trillion of assets.