LAUNCH OF MULTI-ASSET CREDIT FUND TAKES BORDER TO COAST TO £34.6BN

 Border to Coast Pensions Partnership (“Border to Coast”) has successfully launched its £3.7bn Multi-Asset Credit (“MAC”) Fund, taking the total investments Border to Coast is responsible for to £34.6bn in its fourth year of operation.

MAC is a key addition to the Border to Coast fund range, offering an innovative and dynamic blend of fixed income specialists within one proposition to support the needs of its 11 Local Government Pension Scheme (LGPS) Partner Funds.

The Fund’s structure, with each manager focused on a specific fixed income asset class, results in a diversified portfolio through which Partner Funds have access to specialist managers across a range of credit opportunities.  The pooling governance structure also enables allocation between managers to evolve effectively with changes in the credit cycle. The Fund offers cost-effective access to higher-yielding areas of the fixed income market and has been designed to complement the existing Index-Linked Bond, Investment Grade Credit and Private Credit funds offered by Border to Coast.

PIMCO has been appointed as a core MAC manager together with four complementary single asset class specialists:

  • Wellington Management – Global High Yield
  • Barings – Global Leveraged Loans.
  • PGIM Fixed Income – Securitised Credit
  • Ashmore – Emerging Market Debt, local currency and corporate-focussed hard currency

Border to Coast will leverage the expertise of its internal portfolio managers to manage a further mandate focussed on hard currency emerging market sovereign debt.

Rachel Elwell, CEO of Border to Coast, said: “The launch of the Multi-Asset Credit Fund and significant increase in total assets Border to Coast is responsible for is testament to the strength and value that can be unlocked when we all work together.

“We believe MAC is a truly differentiated fixed income offering for our Partner Funds, harnessing both external specialist managers and the internal expertise we have here at Border to Coast.  The final amount invested at launch is 37% higher than originally committed, demonstrating the continued support of our Partner Funds and the value we can collectively create for the LGPS by providing new investment opportunities.”

The Fund is targeting a return of SONIA plus 3% to 4% over five-year periods.