Border to Coast Pensions Partnership, Leeds, England, is searching for four managers to manage £250 million ($325 million) to £500 million each in allocations to high-yield bonds, leveraged loans, emerging market debt and securitized credit, a spokesman said.
The £45 billion pool of local government pension schemes expects to hire four separate managers with complementary skills to each other and Pacific Investment Management Co., which has been hired for core multiasset credit. "(We will be) ensuring we have some European loans in our loan portfolio to complement PIMCO's U.S. loan allocation," the spokesman said.
The mandates will vary in size with the smallest at about £250 million and the largest at £500 million. Further details will be provided in a Jan. 23 conference call. Firms must submit separate proposals for each allocation they want to manage.
Border to Coast can be contacted via email.
Regarding the PIMCO hire, the pension fund picked the firm to manage multiasset credit within the pool's £3 billion fixed-income allocation, starting in early 2021, the spokesman said. The amount PIMCO will manage wasn't specified, but the firm will be the core manager of the allocation.
The strategy will target cash plus between 3% and 4% or more per year through a diversified portfolio of high-yield bonds, leveraged loans, emerging market debt, securitized credit and other fixed-income assets.
"PIMCO has a long and established track record of multiasset credit investing and will play a key role as a strategic partner to Border to Coast in the setup and ongoing management of our multiasset credit fund," CIO Daniel Booth said in a news release.