Strathclyde Pension Fund, Glasgow, Scotland, will conduct a search for a multiasset credit manager to run £300 million ($466 million), recently released pension fund committee meeting minutes said.
The search is a result of the £14.9 billion pension fund's decision in March to reduce equity exposure to create a more overall diversified portfolio. The search is part of the first stage, involving an increase in short-term enhanced yield investments, the core objective is “to deliver an absolute return higher than cash or short-term bonds and with a high degree of predictability,” meeting materials said.
The multiasset credit manager “would rotate assets over time to the opportunity set providing the highest return per unit of risk,” the materials said.
The pension fund will also conduct invitation-only searches for private debt funds to which it plans to commit a total of £300 million. The pension fund is seeking a manager that would focus on first- or second-lien senior secured loans. Funds “might also include some mezzanine, unitranche, real estate or infrastructure debt and a small portion of equity,” the meeting materials said.
A timeline for the searches could not be learned by press time.
Investment consultant Hymans Robertson is assisting.
Officials at the pension fund could not be reached for further information by press time.