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 Fund

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 Fund

Smart Pension has today announced that it has been working with Natixis Investment Managers, one of the world’s largest asset managers by AUM* 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 Fund 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 Fund 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 the fund, 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 fund 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.

About Smart Pension

Launched in 2015, Smart Pension exceeds £4bn in assets under management (AUM) and now serves over one million members and more than 70,000 employers. It is powered by Keystone, Smart’s global savings and investments technology platform.

Aquiline Capital Partners, Barclays, Chrysalis Investments, DWS Group, Fidelity International Strategic Ventures, J.P. Morgan, Legal & General Investment Management, Link Group and Natixis Investment Managers are all investors in Smart Pension.