A new guide to help pension funds and trustees understand and explore alternative credit investments was launched today (Tues) by the National Association of Pension Funds (NAPF).
Interest in investing in alternative credit is growing because of the decline in bank lending across Europe in the wake of the financial crisis. This has opened up new opportunities for investors.
The guide is the latest addition to the NAPF’s popular made simple series and offers pension funds and investors an overview of alternative credit, and explores the three key asset classes: mezzanine, real estate debt and infrastructure debt.
It also highlights how alternative credit can be used to match pension fund liabilities, and suggests a checklist for trustees who are considering adding this asset class to their portfolio.
Joanne Segars, Chief Executive, NAPF, said:
“The fall in bank lending has led to a structural shift in the way that companies are sourcing funding, and has opened up opportunities and growing interest in alternative credit strategies.
“The market for investing in alternative credit is evolving and many pension funds will want to be comfortable with potential operational and technical issues before they step into this asset class. This guide is a useful primer for anyone wanting to understand the key issues.”
The guide, Investing in alternative credit made simple, is written and sponsored by Intermediate Capital Group plc. It is being launched at the NAPF Regulation Conference in London today.
Dagmar Kent-Kershaw, Head of Credit Fund Management, ICG said:
“ The search for alternative yield for pension funds has never been more significant, and one of the issues for trustees looking at alternatives is knowing how to evaluate a new opportunity fully. This guide has been produced to provide a grounding in understanding alternative credit investing, demystify the strategies and providing some fundamental principles on how to get started, all from a Trustee perspective.”
The guide (hard copy) costs £18 for NAPF members and £35 for non-members. It can be ordered online at www.napf.co.uk
Notes to editors:
1. Other recent made simple guides include Custody made simple, Property Investments made simple, Exchange Traded Funds (ETFs) made simple and Securities Class Actions made simple.
2. The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,300 pension schemes with some 16 million members and assets of around £900 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector.
3. Intermediate Capital Group (ICG) is a specialist investment firm and asset manager providing mezzanine finance, leveraged credit and minority equity, with AUM of €13 billion. Founded in 1989, ICG’s head office is in London with a strong local network of offices in Paris, Madrid, Stockholm, Frankfurt, Amsterdam, Hong Kong, Singapore, Sydney and New York. Its stock (ticker symbol: ICP) is listed on the London Stock Exchange. www.icgplc.com.
Paul Platt, Head of Media and PR, NAPF, 020 7601 1717 or 07917 506 683, [email protected]
Helen Barnes, Associate Director, ICG, 0203 201 7760, [email protected]
For a copy of the guide - Jane Dawson, Head of Publishing, 020 7601 1715, [email protected]