LGPS Central launches £680 million multi-asset credit fund

LGPS Central has launched a £680 million Multi-Asset Credit (MAC) Fund. Two fund managers – BMO Global Asset Management and Western Asset Management – were chosen from more than 80 that expressed an interest in tendering for the mandate. Each fund manager will receive half the total mandate.

LGPS Central Limited CIO and investment director for fixed income, Gordon Ross, said: “Pursuing a MAC strategy will give partner funds exposure to multiple fixed income assets/classes through a single fund, resulting in fewer managers, lower costs and a reduced governance burden.”

“It will provide allocation to a broad breadth of strategies, that would not be investable as a standalone asset class, and our fund managers will have the flexibility to move opportunistically between those asset sectors quickly and efficiently,” Ross continued.

“MAC strategies can also provide yield enhancement compared to traditional fixed income strategies, which can help meet liabilities in a low interest rate environment.”

The fund’s initial investors are Cheshire, Leicestershire, Nottinghamshire, and West Midlands.