DENMARK - The DKK22.9bn (€3bn) Danish Teachers' Pension and Life (Lærernes Pension) has chosen two US high-yield boutiques to replace T. Rowe Price and Capital International.
The two boutiques, Post Advisory Group based in Los Angeles and Texas-based Sanders Morris Harris Capital Advisors, were each awarded $140m (€103.4m) mandates.
"We were not dissatisfied with the performance of Capital and T. Rowe Price," Anders Bertramsen, portfolio manager for the fund explained to IPE. "But we wanted to find some less traditional high-yield management and that is what we have found. We are very exited about the appointment."
Sanders Morris Harris run a concentrated portfolio of 20 to 40 issues, a very different approach to most high-yield managers, Bertramsen pointed out.
With Post Advisory Group he stressed their experience with lower quality credits. The manager is advising the Danish mutual fund Gudme Raaschou Invest US High Yield which Lærernes will invest in.
Other reasons for appointing the two specialised boutiques are excellent track records and very experienced teams as well as the low correlation with other asset classes in the Lærernes Pension portfolio.
Putnam stays on as European high-yield manager for the fund.
The replacement at the Danish fund follows various UK pension fund mandate losses for Capital International. The most recent was at the £484.6m (€713.1m) Northumberland County Council pension fund, which has cited performance.