PMCs

Unit-Linked Life Insurance

Secure Income Assets Fund

Fund codeAPBB

Fund aim

The fund aims to deliver stable, long-term cashflows from a portfolio of diversified secure income assets. The fund will target a return of gilts +2.50% per annum (before fees) over a rolling three-year basis. The fund seeks to achieve its objective by primarily investing in a diversified portfolio of sterling denominated infrastructure debt, private corporate debt and real estate debt.

Fund characteristics

The fund seeks to achieve its objective by investing primarily in a diversified portfolio of sterling denominated infrastructure debt, private corporate debt and real estate debt. The Fund has a buy and hold investment philosophy with the aim of producing a stable income stream.
Income may be withdrawn from the fund using the Notional Income Service (NIS).

Fund facts

Fund size£355.9m
Base currencyGBP
DomicileUnited Kingdom
Share class launch01/03/21
As at 31 Dec 2023

Comparator

Markit iBoxx £ Gilts 5-10 years index + 250 BPS

Performance

Source: LGIM. Performance is reported in GBP based on weekly mid-market prices before the deduction of fees.
‘Secure income assets’ (“SIA”) identify cashflow outcomes from illiquid private asset classes, where the income stream often benefits from a range of contractual protections that enhance asset owners’ rights to maintain expected cashflows (for example, covenant protections, specific security or ring-fenced collateral). The contractual protections of a particular asset will depend on these terms and the financial strength of the counterparty. SIAs are held with the aim of producing a predictable income stream - this income stream is not guaranteed and there is no underwriting of income provided to the Fund.<0x000A>This fund is subject to a commitment period of up to 2 years where investors are held in a queue arrangement. Investors are locked in for 3 years following investment in the fund and no redemptions can take place within this period. Once this period has elapsed investors should also be aware that these investments are illiquid are when compared to traded bond securities that are quoted, traded and externally rated. There is not necessarily a readily available counterparty willing to trade at the underlying price of the investment. If an investor wishes to sell all or part of the units and the Fund needs to sell an underlying investment in order to do so, it may take time for the Fund to source a suitable counterparty and for the proceeds to be made available.
Past performance is not a guide to future performance and the value of investments can go down as well as up.

Portfolio breakdown

As at 31 Dec 2023

Top 10 holdings66.0%
Rest of portfolio34.0%

Top 10 holdings (%)

Fibre Net. Owner and Broadband Prov.7.7
Residential Property Leaser7.6
International Supermarket Chain7.6
Gas Utility Holdco6.9
Gas Distribution Company6.5
Capital Call Facility6.3
Utilities and Metering6.2
Multi Let Office Campus6.1
Media Trans.and Smart Meter Prov.5.9
Student Accommodation Portfolio5.2

Sector (%)

Economic Infrastructure
24.6
Real Estate (Debt)
22.1
Other*
18.6
Financial Services (Debt)
14.9
Consumer, Non-cyclical
7.6
Social Infrastructure
6.7
Consumer, Cyclical
3.6
Cash
2.0
*Energy, Industrials and Utilities

All data source LGIM unless otherwise stated. Totals may not sum due to rounding.

Fund managers

Stuart Hitchcock headshot

Stuart Hitchcock

Stuart Hitchcock heads Portfolio Management for Private Credit on a global basis. He is responsible for: overall management of the PM function (for both insurance and pension clients) and providing independent advice for the underwriting of all new investments. Prior to joining LGIM (2018), Stuart worked for NYL Investors, where he managed their international investment management office.

Sam Jones headshot

Sam Jones

Sam Jones is responsible for managing a number of Private Credit portfolios across both insurance and pension clients. He is responsible for assessing new investments, portfolio construction and risk analysis for each of these mandates. Sam joined LGIM in 2011.

Literature

Prices

Units can be purchased, sold or switched on a designated dealing day. This fund is offered on a weekly close basis. Further information is available in the relevant operational procedures sheet and the Description of Funds.

Download full price history

Monthly price history

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Important information

All performance periods over a year will be annualised.

This information is intended for investment professionals only and is for information purposes only. It should not be distributed without our permission.

No investment decisions should be made without first reviewing the Key Information Document, the Key Features Document and Description of Funds of the relevant product which includes information on certain risks associated with an investment.

Unless otherwise agreed in writing, the Information on this website (a) is for information purposes only and we are not soliciting any action based on it, and (b) is not a recommendation to buy or sell securities or pursue a particular investment strategy; and (c) is not investment, legal, regulatory or tax advice. Any trading or investment decisions taken by you should be based on your own analysis and judgment (and/or that of your professional advisers) and not in reliance on us or the Information.

All information detailed on this website is current at the time of publication and may be changed in the future.

Following the imposition of sanctions on Russian securities and assets being removed from indices the market has been effectively frozen for foreign investors and all equity positions have been marked to zero in line with LGIM’s fair value pricing policy. Regardless of being priced at zero LGIM funds may still own these securities and any value realised in the future will be for the sole benefit of the relevant fund. LGIM will seek to divest from such securities at such a time that market conditions allow consistent with our fiduciary duties and applicable sanctions.

Source and third party data

Source: Unless otherwise indicated all data contained on this website is sourced from Legal and General Assurance (Pensions Management) Limited.

Where this document contains third party data ('Third Party Data’), we cannot guarantee the accuracy, completeness or reliability of such Third Party Data and accept no responsibility or liability whatsoever in respect of such Third Party Data.

Issuer

Information for all Pension and Life Funds is issued by Legal and General Assurance (Pensions Management) Limited (‘PMC’). It is a life insurance company which carries on linked insurance business. As part of that business, it holds investments divided into separate sub-funds known as PF Sections. The value of each Policy that it issues is determined by reference to the value of one or more of the PF Sections. Legal & General Investment Management Limited, has been appointed as the investment manager of these PF Sections and is authorised and regulated by the Financial Conduct Authority. LGIM also provides investment and marketing services to PMC.

Legal and General Assurance (Pensions Management) Limited is Registered in England and Wales No. 01006112.  Registered Office: One Coleman Street, London, EC2R 5AA, United Kingdom. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, No. 202202.

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