LGPS Central is set to launch a new global active investment grade credit authorised contractual scheme (ACS) sub-fund, as part of the continued development of its fixed-income offering, the investment pool stated.
The £44.9bn (€52bn) pool said the fund has been developed to sit alongside LGPS Central’s existing pooled credit funds, expanding the range of options and providing greater flexibility to access high-quality credit markets.
The fund will be managed in partnership with three global credit managers: Capital Group, JP Morgan Asset Management and Neuberger Berman.
LGPS Central already manages an actively managed investment-grade credit fund with a significant sterling component, which it said reflects the need to see closer alignment with UK liabilities and domestic market exposure.
The new fund has been designed to complement this approach by providing access to a broader global investment-grade universe, giving the pool the ability to tailor credit allocations more precisely to individual partner-fund objectives.
The two credit funds are intended to support different portfolio construction needs, with the additional sub-fund providing greater diversification across global issuers and sectors, the pool explained.
It added that the availability of both funds will enable LGPS Central to adopt a blended approach within its wider fixed-income allocations, combining strategies as appropriate for each partner fund.
Jayne Atkinson, chief investment officer at LGPS Central, said: “By partnering with three experienced global credit managers within a single pooled structure, we are able to combine differentiated active approaches with consistent oversight, scale and governance, while continuing to maintain flexibility in how we access global credit markets on behalf of our partner funds.”
