Brunel Pension Partnership Limited (Brunel) has launched a search for managers for its GBP1.5 billion Multi-Asset Credit sub-fund.The portfolio will invest in a variety of specialist bond sectors, such as high yield corporate bonds, bank loans, asset-backed securities and emerging market debt. The intention is to gain exposure to range of more specialised, higher-yielding bond sectors which collectively provide a diversifying, moderately high-return portfolio. Brunel expects to spread the portfolio between managers with diverse and complementary approaches. The company says it is looking forward to seeing how managers align their submissions with Brunel’s Climate Change Policy.
The deadline for receipt of expressions of interest is 11am GMT on Tuesday 01 September 2020.
“Multi-Asset Credit provides an exciting opportunity for our clients to gain access to sub-investment grade credit in a diversified and understandable manner, with strong ESG integration,” says Daniel Spencer, Senior Investment Officer at Brunel. “The portfolio will be highly differentiated from our other portfolio offerings, providing our clients with an opportunity to reduce risk whilst maintaining reasonable levels of expected return through use of diversified credit.”
“The Multi-Asset Credit fund enables us to offer something different,” says Liz Woodyard, Investments Manager, Avon Pension fund. “Broadening our asset allocation capabilities has potential benefits from both a diversification and an investment performance perspective.”
The Multi-Asset Credit portfolio aims to gain exposure to a diversified portfolio of enhanced credit opportunities with modest-to-low exposure to interest rate risk. The performance objective is to outperform SONIA (Sterling Overnight Index Average) by +4-5 per cent over a rolling three to five-year period. Selective exposure to investment grade corporate bonds will be permitted.
The Multi-Asset Credit portfolio size will be approximately GBP1.5 billion, to be allocated between the selected managers. The sub-fund will be delivered through the ACS platform Brunel has developed in conjunction with FundRock. The formal launch is scheduled for Q1 2021.
Brunel is being assisted throughout the process by consultants from Mercer.
