PIMCO appointed to manage LGPS pool multi-asset credit fund

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LGPS pool Border to Coast Pensions Partnership has appointed investment manager PIMCO as the core manager for its multi-asset credit (MAC) fund, set for launch in early 2021.

The fund will sit within Border to Coast’s fixed income fund range and will offer its partner funds access to higher-yielding areas of public fixed income markets, the pool said.

The MAC strategy will target cash plus 3% to 4% pa through a diversified portfolio of high yield bonds, leveraged loans, emerging market debt, securitised credit and other fixed income assets.

According to a statement from the pool, the fund will be constructed with a core-satellite structure consisting of a core MAC manager, PIMCO, and a series of complementary single asset class specialists.

Daniel Booth, chief investment officer at Border to Coast, said “Establishing a multi-asset credit fund is an essential part of Border to Coast’s objective in delivering long-term risk-adjusted investment returns for our twelve partner funds.”