NETHERLANDS - PME, the Dutch metal workers' pension fund, has dished out six new mandates in US high yield and emerging debt totaling $1.55bn.
“In an environment of low nominal interest rates, the importance of higher coupons and alpha to total return increases,” said Roland van den Brink, PME’s managing director investments.
The US high yield debt allocation is split between three managers with GoldenTree Asset Management picking up the biggest mandate at US$310m. ING Ghent and SEIX Investment Advisors will manage $264m and $202m respectively.
GoldenTree will run a broad mandate with the ability to invest in bank loans, ING a concentrated portfolio of middle quality securities and SEIX a broadly diversified portfolio of higher quality securities.
On the emerging debt front, Citigroup Asset Management is to manage a $279m chunk and Ashmore Investment Management and Bridgewater Associates each $248m, benchmarked to the JPMorgan EMBI Global Diversified.
Ashmore will manage a portfolio with the ability to invest in local currency denominated debt and corporate debt instruments. Bridgewater will work with a structured model driven portfolio and Citigroup with a more fundamentally driven portfolio.
On the appointments, van den Brink said: “We have selected this combination of managers with different styles to produce constant alpha in different time frames.”
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