Willis Towers Watson has introduced a secure income fund that provides a cash flow generating alternative to traditional credit and gilts.
The consultancy's fund provides inflation-linked cash flows by investing in a wide range of strategies across real estate, infrastructure, renewable energy and real asset debt.
It has an expected long-term annual yield of 4-5%, while also adding diversification to a portfolio. It uses all implementation options including secondaries and co-investments.
It comes as defined benefit (DB) schemes are increasingly becoming cash flow negative as they mature, yet struggle to get good and steady returns from traditional asset classes.
Willis Towers Watson global head of real assets 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.
The firm said it has been investing in secure income assets since 2006, and has a 30-strong team to identify opportunities and engage with managers.
It comes after the firm recently launched its Asset Management Exchange to allow schemes to invest in external managers using a centralised back office and standardised fund infrastructure.
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