On the go: Border to Coast Pensions Partnership has appointed Pimco as the core manager for its multi-asset credit fund, which is expected to launch in early 2021.
The fund will sit within the local authority pool’s fixed income fund range, and will access higher-yielding areas of public fixed income markets, Border to Coast stated.
The strategy will target cash plus 3 to 4 per cent a year through a diversified portfolio of high-yield bonds, leveraged loans, emerging market debt, securitised credit and other fixed income assets.
The fund will be constructed with a core-satellite structure consisting of a core multi-asset credit manager, Pimco, and a series of complementary single-asset class specialists.
Border to Coast is now seeking applications from investment managers for four individual asset class mandates that will target the four asset classes. The mandate sizes are expected to range from £250m to £500m.
According to Daniel Booth, chief investment officer at Border to Coast, establishing a multi-asset credit fund is an essential part of the pool’s objective in delivering long-term, risk-adjusted investment returns for its 12 partner funds.
“Pimco has a long and established track record of multi-asset credit investing, and will play a key role as a strategic partner to Border to Coast in the set-up and ongoing management of our multi-asset credit fund,” he said.
The Border to Coast is a collaboration of the LGPS funds for Bedfordshire, Cumbria, Durham, East Riding, Lincolnshire, Northumberland, North Yorkshire, Surrey, South Yorkshire, Teesside, Tyne and Wear, and Warwickshire.
