On the go: LGPS Central, which manages around £23bn of assets for eight Local Government Pension Scheme funds worth a collective £45bn, has launched a £680m Multi-asset Credit Fund.
The fund will be managed by BMO Global Asset Management and Western Asset Management Company. Each manager will receive half of the total mandate.
The initial investors of the fund are the £5.5bn Cheshire Pension Fund, the £4.5bn Leicestershire County Council Pension Fund, the £5.5bn Nottinghamshire County Council Pension Fund, and the £17.1bn West Midlands Pension Fund.
Gordon Ross, LGPS Central chief investment officer and investment director for fixed income, noted that pursuing a multi-asset credit strategy “will give partner funds exposure to multiple fixed income assets/classes through a single fund, thereby resulting in fewer managers, lower costs and reduced governance burden”.
He continued: “It will provide allocation to a broad breadth of strategies that would not be investable as a standalone asset class, and our fund managers will have the flexibility to move opportunistically between those asset sectors quickly and efficiently.
"MAC strategies can also provide yield enhancement compared with traditional fixed income strategies, which can help meet liabilities in a low interest rate environment.”
This article originally appeared on Mandatewire.com
