BMO Global Asset Management and Western Asset Management are to share a multi-asset credit mandate for a UK local authority pensions pool.
LGPS Central awarded the mandate, which is worth £680 million, after more than 80 asset managers showed interest, the scheme said.
LGPS Central manages £23 billion for eight pension schemes, including Debyshire and Cheshire.
Gordon Ross (pictured), fixed income CIO at LGPS Central, said multi-asset credit could provide yield enhancement compared to traditional bonds and that the single fund would allow partner schemes to access to the asset class but with lower costs, fewer manages and less of a governance burden.
“It will provide allocation to a broad breadth of strategies that would not be investable as a standalone asset, and our fund managers will have the flexibility to move opportunistically between those sectors quickly and efficiently.”
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