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Devon Pension Fund invests in infrastructure fund

15 January 2014

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Devon County Council Pension Fund has announced that it is committing to invest £40m in Aviva Investors' returns enhancing and liability matching (REaLM) strategies, as part of a recent increase in allocation to infrastructure investments.

The commitment means that Devon County Council Pension Fund is the first local authority pension scheme to invest in the REaLM infrastructure fund.

Half of Devon County Council Pension Fund's investment has been committed to the REaLM Infrastructure Fund, and the other half to the REaLM Ground Rents Fund.

Mark Gayler, Devon County Council assistant county treasurer, said: "Inflation is on of the key risks raced by pension funds.

The Devon Pension Fund's investment in the Aviva Investors REaLM funds will provide protection against UK inflation, whilst offering diversification at relatively low risk."

The REaLM funds currently have combined commitments and assets under management of £1.6bn, with the infrastructure fund comprising £396 million of the total.

Phil Ellis, Aviva Investors client director, said: "We are pleased that the Devon County Council Pension Fund has become the first local government pension scheme to invest in the REaLM Infrastructure Fund.

"As more and more local authorities invest in UK infrastructure projects, we believe that REaLM represents a fantastic solution for clients looking for infrastructure investments that offer secure, long-term and inflation-linked income streams."

First published 15.01.2014

monique_simpson@wilmington.co.uk