LGPS Central issues multi-asset credit mandate

August, 2020 Print

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LGPS Central has launched a search for active, global, multi-asset credit debt managers to manage their £660 million Global Active Multi-Asset Credit Fund.

The fund will target a net return of between 3-5% above its benchmark, the three-month sterling overnight index average rate.

Investments will be predominantly in global fixed and floating rate instruments in debt markets including government, investment grade, high yield, emerging market debt and loans.

Limits will be set at up to 10% for investments in government and investment grade bonds and emerging market debt, as well as non-sterling currency exposure; the remainder of the portfolio should be hedged back to sterling. All other sectors will be limited to a maximum of 30% of the portfolio, but exposure to any one issuer should not be higher than 5%.

The fund will also be “unconstrained geographically, be a diversified portfolio, have no leverage taken at the portfolio/fund level” and “may use derivatives for hedging and efficient portfolio management”, the pool said. The portfolio should also be predominantly liquid.

The pool said it was looking for managers to demonstrate low cost, fully transparent, value for money and responsible investment as part of the investment process.

 

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