Border to Coast Pensions Partnership, Leeds, England, hired four managers to run part of a £2.7 billion ($3.5 billion) allocation to multiasset credit, a spokesman confirmed Wednesday.
The four managers will run the assets alongside Pacific Investment Management Co., which was selected earlier this year as a core manager for the new allocation, which will be launched in the first half of 2021.
Wellington Management was selected to manage global high-yield debt, Barings will run an allocation to global syndicated loans, PGIM Fixed Income will manage an allocation to securitized credit, and Ashmore Group will run an emerging market debt investment.
Each allocation will be between £250 million and £500 million, with PIMCO expected to hold the largest share of the allocation. Border to Coast will be flexible about the assets in each component part, the spokesman said. Further details were not specified.
The fund will use the sterling overnight index average rate plus 3% to 4% as its five-year annualized return target.
Border to Coast, a local government pension scheme pool with £46 billion in assets, received submissions from over 110 managers, it said in a news release Wednesday. Consultant Mercer assisted with the search.
"The selected managers are expected to make a strong contribution to our purpose by making a positive difference to investment outcomes for the LGPS. They represent excellent value for our partner funds relative to similar investment options in the market," said Daniel Booth, CIO at Border to Coast, in the news release.
The allocation will be funded from member pension funds' assets.