Border to Coast MAC launch boosts AUM to £34.6 billion

Border to Coast Pensions Partnership has launched its £3.7 billion Multi-Asset Credit Fund, increasing total investments to £34.6 billion in its fourth year of operation.

The MAC offers what Border to Coast considers to be 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.

Each manager has a focus on a specific fixed income asset class, providing a diversified portfolio that offers partner funds access to specialist managers across a range of credit sources.

Partners will gain cost-effective access to higher-yielding areas of the fixed income market and the fund is designed to complement Border’s existing range of index-linked bond, investment grade credit and private credit funds. The fund will target a return of SONIA plus 3% to 4% over five-year periods.

PIMCO has been named core manager, alongside four single asset class specialists; Wellington Management (global high yield), Barings (global leveraged loans), PGIM Fixed Income (securitised credit) and Ashmore (emerging market debt, local currency and corporate-focused hard currency).

Border’s internal portfolio managers will manage a separate mandate focused on hard currency emerging market sovereign debt.