Border To Coast Primes Managers Ahead Of £6bn Fixed Income Search

Border to Coast, the £45bn (€51bn) local authority pension asset pool, has published plans for fixed income fund launches targeting up to £6bn in assets under management.

In a tender notice it said it expected to launch a sterling investment grade credit fund and a global multi-asset credit fund in the fourth quarter of this year and the first half of next year, respectively.

The funds were each expected to have £2bn-£3bn in assets under management at launch, it said.

The pool, which is a collaboration of 12 local government pension schemes (LGPS), has already launched a £1.2bn UK equities fund and is due to launch a global equities fund in the third quarter.

For the multi-asset credit mandate, Border to Coast intended to take a “core-satellite” approach, with the “core” manager to be appointed first and then specialist managers.

It was looking for specialists in asset classes such as high-yield bonds, leveraged loans, emerging market debt and asset-backed securities.

For the sterling investment grade mandate, the pool said it would be looking for two or three active managers with a “long-term, low turnover” approach, focusing on high quality credit selection.

More details about the mandates will be provided during a “fixed income manager day” on 17 June at the pool’s head office in Leeds.

Border to Coast’s 12 partner LGPS funds are Bedfordshire, Cumbria, Durham, East Riding, Lincolnshire, North Yorkshire, Northumberland, South Yorkshire, Surrey, Teesside, Tyne & Wear, and Warwickshire.