Brunel Pension Partnership has opened a search for managers to run its £1.5bn multi-asset credit sub-fund.
The fund is designed to invest in a variety of specialist bond sectors - including high-yield corporate bonds, bank loans, asset-backed securities, and emerging market debt - in order to gain exposure to more specialised, higher-yielding bond sectors to provide a diversifying and moderately high-return portfolio.
The Local Government Pension Scheme (LGPS) pool is seeking multiple managers with "diverse and complementary approaches" and submissions should be aligned with Brunel's climate change policy.
Senior investment officer Daniel Spencer said: "Multi-asset credit provides an exciting opportunity for our clients to gain access to sub-investment grade credit in a diversified and understandable manner, with strong ESG integration.
"The portfolio will be highly differentiated from our other portfolio offerings, providing our clients with an opportunity to reduce risk while maintaining reasonable levels of expected return through use of diversified credit.
The pool aims for the portfolio to have modest-to-low exposure to interest rate risk while outperforming the Sterling Overnight Index Average (SONIA) by 4-5% over a rolling three-to-five-year period.
The sub-fund will be delivered through Brunel's ACS platform, developed in conjunction with FundRock. Interested parties will need to apply by 11am on 1 September in preparation for a formal launch in the first quarter of next year.
Brunel coordinates the investments of the local authority funds of Avon, Buckinghamshire, Cornwall, Devon, Dorset, Gloucestershire, Oxfordshire, Somerset, and Wiltshire, as well as the Environment Agency Pension Fund. As of 31 December last year, around £15bn of assets had been pooled.
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