Border to Coast Pensions Partnership, one of the UK’s largest pension pools, has launched its first fixed income product with a £2.5 billion (€2.8 billion) investment grade credit fund.
The fund will focus on sterling-denominated bonds issued by a variety of global companies.
Three investment managers (Insight, M&G and Royal London Asset Management) were selected to manage the fund, each with a complementary investment style and distinct role to play in the portfolio.
The fund is expected to result in aggregate fee savings of approximately £500,000 pa across the pool.
The partner funds involved as initial investors were the local authorities of the East Riding of Yorkshire, Lincolnshire, Tyne & Wear, South Yorkshire and Warwickshire.
Daniel Booth, Border to Coast chief investment officer, said: “The launch of our first fixed income fund, Sterling Investment Grade Credit, provides our partner funds with a key diversification option within the Border to Coast fund range.
“The importance of this product is highlighted by the sizeable initial commitments received.”
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