Railpen, one of the largest pension funds in the UK, has awarded Neuberger Berman a £2bn mandate to manage a liquid multi-asset credit strategy.

The mandate establishes a strategic partnership between the two firms and will focus on investment across a broad range of credit sectors covering both the investment grade and non-investment grade spaces, it was pointed out.

The strategy will sit within Railpen’s Growth Fund and has been designed to help the pension scheme deliver on the Growth Fund’s risk and return objectives.

Railpen, which manages around £34bn of assets on behalf of the railway industry, said it is committed to investing securely and sustainably. The strategic partnership with Neuberger Berman is expected to enable Railpen to continue its commitment to securing its members’ futures, it said.

Neuberger Berman’s team of credit investment professionals will leverage the firm’s proprietary research and risk-management capabilities to identify “attractive” investment opportunities and manage risk, it was added.

Harsha Patel of the external manager oversight team at Railpen said the partnership with Neuberger Berman would deliver a liquid multi-asset credit strategy that will help Railpen achieve its investment goals.

“The firm’s expertise in credit investing, combined with strong ESG capabilities, makes Neuberger Berman an ideal partner for us as we continue to secure our members’ future,” she added.

Ed Jones, head of UK institutional client business at Neuberger Berman, said: “We are pleased to be able to help Railpen’s members achieve their investment goals in its Growth Fund by utilising our liquid credit expertise across the broad range of market sectors.”

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