Border to Coast update on its multi asset credit fund

Border to Coast Pensions Partnership (“Border to Coast”), one of the largest public sector pension pools in the UK, has appointed PIMCO as the core manager for its multi-asset credit (MAC) fund which is expected to be launched 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 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. 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. PIMCO has a long and established track record of multi-asset credit investing and will play a key role as a strategic partner to Border to Coast in the set-up and on-going management of our multi-asset credit fund.”

Ryan Blute, Managing Director for PIMCO, said, “We are honoured to have been selected to partner with Border to Coast Pension Partnership as the core multi asset credit manager. We look forward to sharing our extensive resources and experience across global fixed income markets as we work towards our mutual goal of achieving strong risk-adjusted investment returns and meeting the needs of the underlying Partner Funds.”

Selection of Single Asset Specialists for Multi-Asset Credit

Border to Coast is now seeking applications from investment managers for four individual asset class mandates. These will cover high yield bonds; leveraged loans; emerging market debt; and, securitised credit. The mandate sizes are expected to range from £250m to £500m.

To provide further information on the selection process for our single asset specialists, Border to Coast is holding a webex conference call on 23 January 2020. This will cover the proposed structure of the Multi-Asset Credit fund and details on the proposed mandates in the four assets classes.

Managers wishing to participate in the call should contact Border to Coast events@bordertocoast.org.uk. A recording of the conference call will be available for those unable to attend the call.