The UK’s South Yorkshire Pensions Authority has awarded a £250m (€344m) fixed income mandate to Royal London Asset Management.

The local authority pension fund had been looking for a manager for a buy-and-maintain portfolio consisting largely of sterling-denominated bonds, according to an EU contract award notice. 

The mandate could also include bonds from major markets abroad, as long as the currencies are hedged back to sterling and meet the overall aim of the mandate.

The search was managed by consultancy Mercer.

The portfolio, to be managed on a segregated basis, amounts to around 5% of the pension scheme’s total assets.

The pension fund said at the time that the portfolio should have broad exposure across regions, sectors and company size bands, but that this diversification should be within set limits.

In all, there were 33 offers as a result of the tender.