Pension fund to invest in affordable housing in Cornwall
0Cornwall Pension Fund (CPF) has launched a local impact portfolio to channel investment into affordable private rental housing and renewables in the county.
There is an initial commitment from the Local Government Pension Scheme fund of £115m across three mandates: affordable housing in Cornwall (£65m); renewables in Cornwall (approximately £25m); and renewables in the UK (approximately £25m).
“The new Cornwall Local Impact portfolio, as part of our social impact allocation, enables us to combine our fiduciary responsibilities to our members with delivering positive social and environmental outcomes in our county, where our members have worked and lived,” said Jayne Kirkham, chair of the CPF Pensions Committee.
CPF is a member of the Brunel Pension Partnership, and asked the pool to design, implement and monitor a portfolio that pursues local impact investment across both social and environmental policies.
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Laura Chappell, chief executive officer for Brunel Pension Partnership, said: “It is a “proud moment for Brunel to design and launch the first multi-asset local impact fund across LGPS pools.”
She added: “We believe this kind of product should become a feature of pension pool investing. We look forward to seeing the fund deliver for its members and for Cornwall in the years ahead.”
The affordable housing mandate will be managed by PGIM Real Estate, while the two mandates for renewables will be managed by Schroders Greencoat.
The portfolio targets a net 5% annual internal rate of return over a rolling 7-10-year period.
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