UK - The £4.1bn (US$6.5bn) Merseyside Pension Fund has retained fixed income managers Schroders and Legal & General following a formal review and tender process.
The two managers will continue to run active unconstrained UK fixed income portfolios worth a combined £372m or 9% of the fund.
The review was conducted with consultant Hymans Robertson.
Merseyside's active UK bond mandates target out-performance of 1% on a three-year annualised basis against a bespoke composite benchmark consisting of Sterling gilts and corporate bonds.
Merseyside Pension Fund head Peter Wallach said: "We conducted an open tendering process for these mandates as part of the formal review of our existing managers. With the help of Hymans Robertson, we were able to rigorously test the market to see what was on offer that could meet our specific requirements.
"From this process it emerged that our incumbent managers still provided the best fit."
Hymans Robertson partner and head of manager research Stephen Birch said: "Recent events in the corporate bond and gilt markets have provided exceptional opportunities for active managers to add value. Accessing these returns through intelligent manager selection is more critical than ever."
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