Border to Coast Pensions Partnership, the asset manager owned by 11 UK local authority pension funds, has appointed four specialist managers for its multi-asset credit fund.

It has selected Wellington Management to run a global high yield strategy, Barings for global syndicated loans, PGIM Fixed Income for securitised credit, and Ashmore to manage emerging market debt investments.

Subject to regulatory approval, the fund is scheduled to launch in the first half of 2021 with assets of £2.7bn (€2.89bn).

PIMCO was announced as the core manager for the fund in January, with applications to run the specialist single asset class strategies opening a month later. Over 110 managers applied, according to Border to Coast.

It said significant emphasis was placed on the quality of the investment approach and the extent to which responsible investment factors were embedded in the investment process.

The multi-asset credit fund also incorporates an internally managed emerging market debt sleeve.

”The multi-asset credit fund will provide our partner funds with access to the full spectrum of credit assets via high-quality and cost-effective active management,” said Daniel Booth, CIO of Border to Coast.

”The selected managers are expected to make a strong contribution to our purpose by making a positive difference to investment outcomes for the LGPS. They represent excellent value for our partner funds relative to similar investment options in the market.”

The 11 partner funds, which have combined assets of around £46bn, include Bedfordshire, Cumbria, Durham, East Riding, Lincolnshire, North Yorkshire, Surrey, South Yorkshire, Teesside, Tyne and Wear and Warwickshire.

Record lands $8bn mandate

Specialist currency manager Record this week announced that, subject to contract, it has been selected for a dynamic hedging mandate of around $8bn (€6.7bn) in size (assets under management equivalent quoted by convention in US dollars). The investor was not named.

It said the annualised fee rate for the mandate was consistent with its other dynamic hedging mandates, based on the size of allocation. Assuming contract negotiations conclude successfully, the mandate would build up over time and be revenue-generating by the end of this calendar year, it added.

Swiss pension plan seeks EM small cap manager

A Swiss workplace pension scheme is using IPE Quest to search for a manager for a $200-400m emerging market equity small cap mandate.

According to Search QN-2623, the investor wants an actively managed or strategy or “enhanced” process. The benchmark is to be the MSCI Emerging Market Small Cap, with a maximum tracking error of 5%.

Successful applicants will need to preferably have more than $2bn in emerging market small and mid-cap equity and a track record of at least five years but eight is preferred.

Performance data should be supplied in US dollars and gross of fees, and stated to 30 June 2020.

The deadline for questions is Friday, 25 September. The final closing date is 30 September at 5pm UK time.

The IPE news team is unable to answer any further questions about IPE Quest, Discovery, or Innovation tender notices to protect the interests of clients conducting the search. To obtain information directly from IPE Quest, please contact Jayna Vishram on +44 (0) 20 3465 9330 or email jayna.vishram@ipe-quest.com.

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