Border to Coast Pensions Partnership, Leeds, England, is set to launch searches for fixed-income and private markets managers, according to its website.
The £46 billion ($59 billion) pool of U.K. local authority pension funds will be looking for U.K. investment-grade credit and global multiasset credit managers, with contracts starting in the fourth quarter of 2019 and second half of 2020, respectively, said a notice on European procurement website Tenders Electronic Daily. Allocations will each be between £2 billion and £3 billion.
Two to three active managers with a long-term and low-turnover approach will be chosen to run U.K. investment-grade credit.
Border to Coast intends to hire a multiasset credit manager with a "core-satellite approach."
"We are expecting to run a two-stage procurement for multiasset credit, with a core manager appointed first followed by the specialist managers at a later stage," Border to Coast said in the notice.
Specialist managers in fixed-income asset classes such as high-yield bonds, leveraged loans, emerging market debt and asset-backed securities will be selected later.
Border to Coast is also gearing up to launch a search for private markets managers. Selection of investments has begun for private equity, and investment selection is expected to begin for infrastructure in the third quarter and private credit in the fourth quarter, the pool said on its website.
Border to Coast expects to deploy about £1 billion of capital per year across private markets.
Border to Coast will host a fixed-income manager day June 2 and private markets manager day July 17 when further details will be provided about the searches. To register, email the pension fund.
BCPP oversees the investment of assets for the Bedfordshire Pension Fund, Bedford; Cumbria Local Government Pension Scheme, Carlisle; Durham County Council Pension Fund; East Riding Pension Fund, Goole; Lincolnshire Pension Fund, Lincoln; North Yorkshire Pension Fund, Northallerton; Northumberland County Council Pension Fund, Morpeth; South Yorkshire Pension Fund, Barnsley; Surrey Pension Fund, Kingston upon Thames; Teesside Pension Fund, Middlesbrough; Tyne and Wear Pension Fund, Sunderland; and Warwickshire County Council Pension Fund, Warwick.
