Nottinghamshire County Council Pension Fund, Nottingham, England, hired Kames Capital to manage a £300 million ($374 million) buy-and-hold fixed-income portfolio aimed at getting cash flow for future illiquid investments, said the plan's independent adviser, William Bourne.
The £4 billion pension plan will invest in a portfolio of corporate bonds with a target yield of LIBOR +1.25% after fees.
“The mandate is an addition to an existing contract with Kames Capital and it was created in order to secure cash flow for infrastructure and property investments planned to be made in the next four years,” said Mr. Bourne in a telephone interview. Kames already managed £424 million in other fixed-income strategies for the pension fund as of March 31, 2016.
Keith Palframan, group manager of finance at Nottinghamshire County Council Pension Fund, said in a news release: “(The plan) made a long-term commitment to infrastructure and intends to make staged investments from March 2018 to the end of 2021. Kames Capital has created a corporate bond portfolio to meet our objectives for liquidity, security and performance over this period,” Mr. Palframan said in the release.