Fidelity seeds new London Bond Strategy with £40M from Bromley pension fund

What's the deal? Fidelity InternationalDealroom has a profile for this one. Try Dealroom → has secured a £40 million mandate from the London Borough of Bromley Pension Fund to seed its new London Bond Strategy. The strategy lets London borough pension schemes invest in investment-grade issuers that contribute to the capital's economy.

How it works: At least 80% of the portfolio will go to investment-grade issuers tied to London's economy and infrastructure. The strategy targets two categories: Core London Assets, which support essential physical and social infrastructure, and London Economic Anchors, major employers and businesses driving economic activity.

Who's running it? Ian Fishwick manages the strategy alongside co-portfolio managers Kris Atkinson and Shamil Gohil, within Fidelity's sterling credit platform. It draws on the firm's global fixed income team, which manages about $100 billion across investment-grade credit, high yield, sovereign debt, emerging market debt, and multi-sector strategies.

Why now? UK policymakers are pushing pension schemes to support domestic economic growth, and Local Government Pension Schemes (LGPS) increasingly want to invest closer to the communities they serve.

What they're saying: LGPS "are increasingly looking for investment solutions that deliver attractive risk-adjusted returns while investing in the communities they serve," said Tom Jeffery, head of EMEA institutional at Fidelity International.

Cllr Sumeet Jalan, chairman of Bromley's Pension Investment Committee, said Fidelity has been "a long-standing investment partner" and that the fund worked closely with the manager on developing the strategy.

The signal: The launch reflects a growing appetite among UK local pension schemes for place-based investing that blends returns with local economic impact, giving asset managers a template for regionally focused credit products.

Read more: Funds Europe

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