Executive interview: Bond diversification with Border to Coast

Daniel Booth, CIO of the Border to Coast Pensions Partnership, one of the largest public sector pension pools in the UK, explains the fund’s fixed income exposure to Funds Europe. The fund recently appointed Pimco as the core manager for its multi-asset credit fund, expected to be launched in early 2021.

Beyond this, the £45 billion (€53 billion) pension pool – made up of 12 UK local authorities – has also launched a search for investment managers for four asset class mandates covering high yield bonds, leveraged loans, emerging market debt and securitised credit.

Border to Coast’s multi-asset credit [‘MAC’] strategy will target cash plus 3% to 4% a year through a diversified portfolio of high yield bonds, leveraged loans, securitised credit and more.

“As global bond yields have fallen, many institutional investors – our partner funds included – have reviewed their fixed income portfolios,” says Booth.

“This has typically involved diversifying their traditional exposure to government bonds and investment grade credit with allocations to higher-returning – and higher-risk – fixed income assets such as high yield bonds or emerging market debt.”

© 2020 funds europe

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