Brunel Pension Partnership Bristol, England, is searching for managers to run a £1.5 billion ($1.9 billion) multiasset credit allocation and a £1.2 billion sterling corporate bond investment, said a spokesman.
The £30 billion pool of U.K. local authority pension funds, wants managers to run a new £1.5 billion multiasset credit portfolio.
The portfolio will invest in a variety of specialist bond sectors, such as high-yield corporate bonds, bank loans, asset-backed securities and emerging market debt.
The selected managers are expected to outperform the sterling overnight index average by an annualized 4% to 5% over a 3- to 5-year period.
"The portfolio will be highly differentiated from our other portfolio offerings, providing our clients with an opportunity to reduce risk whilst maintaining reasonable levels of expected return through use of diversified credit," Daniel Spencer, senior investment officer at Brunel, said in a news release.
Prospective managers should contact Brunel to receive a submission form. Submissions are due by 11 a.m. BST on Sept.1.
Brunel is also searching for managers to run a £1.2 billion portfolio of sterling-denominated bonds and securitized debt. Managers may also invest in high-yield bonds and some non-sterling bonds.
Brunel will consider both active and buy-and-maintain approaches, according to a separate news release.
"The sterling corporate bond portfolio enables our clients to access a highly diversified fund, with a broad spectrum of holdings across a range of maturities," Stephanie Carter, senior investment officer at Brunel, said in the release. "From the tender process, we will be looking for evidence of strong credit analysis, considered portfolio construction and robust ESG integration," she added.
Submissions should be sent by 11 a.m. BST on Aug. 17. Candidates should contact Brunel to receive a submission form.
Brunel will be assisted by consultants Mercer and Inalytics in both searches. The selected managers are required to invest in line with the pool's climate policy. The allocations are being funded by the transfer of assets from member local authority funds into the pool.