The Strathclyde Pension Fund is tendering a £250m (€292m) emerging market debt mandate, finalising an overhaul of its investment strategy.

The £16bn Scottish local authority scheme said the actively managed debt mandate would invest in a range of debt, local and hard currencies, across issuances by sovereigns and corporates.

The fund did not settle on a return target for the mandate, which it said could be held in a segregated account or invested in an existing pooled vehicle.

But it noted that returns would need to be generated from the manager’s asset allocation choices but also the duration of any debt instruments and advantageous currency positions.

The five-year contract is only open to managers with at least a five-year track record managing EM debt, with the possibility the mandate could run a total of 10 years.

Strathclyde hopes to attract eight suitable asset managers by the time consultancy Hymans Robertson closes the tender on 28 August.

The tender comes as the fund shifts towards short and long-term enhanced-yield strategies.

The overhaul, agreed last year, will see enhanced-yield strategies prioritised over equity exposure, the fund has previously said.

The EM debt mandate will form part of the fund’s short-term enhanced-yield strategy, to account for a total of 15% of scheme assets.