Greater Manchester Pension Fund, Manchester, England, hired three managers to run two separate multicredit allocations, totaling around £750 million ($1.1 billion) of assets.
The three managers are Oak Hill Advisors, KKR & Co., and Stone Harbor Investment Partners, said a notice filed with procurement website Tenders Electronic Daily. The pension fund has £16 billion of assets.
The first allocation is about £650 million and will seek higher-yielding public credit opportunities. This may be extended to include opportunities in private placement.
The second allocation is expected to have an initial size of about £100 million, although it has the potential to significantly increase over time, the notice said. The assets may be invested in higher-quality debt-related investments, potentially including investment-grade buy-and-maintain credit. This portfolio aims to generate cash flows to form part of a liability/cash flow-matching strategy.
Details on the funding of the allocations, and how the investments will be split among managers, could not be learned by press time.
Spokesmen at Tameside Borough Council, the administering authority, could not be reached for comment by press time.