Fixed income specialist Stone Harbour Investment Partners has been awarded a £1 billion (€1.14 billion) multi-asset credit mandate by the UK’s largest local government pension fund.
US-based Stone Harbour IP will manage the mandate for Greater Manchester Pension Fund.
It will invest across the entire fixed income spectrum including global sovereign debt, investment grade corporate debt, securitised debt, high yield and emerging markets sovereign and corporate debt.
The multi-asset mandate will be managed by portfolio manager David Scott. Commenting on the strategy, Scott said: ‘We focus on higher yielding public markets, allowing an active allocation decision to combine with a bottom up security selection process.
‘Our multi-asset credit strategy is currently adopting a somewhat conservative stance overall given valuations, with a bias towards the sovereign cycle over the corporate cycle.’
The agreement comes during a period of heightened demand for unconstrained fixed income investment strategies, according to Stone Harbour.
Stone Harbor IP added that this award comes at a time when UK pension funds are increasingly interested in broad outcome-oriented credit strategies, both from within the LGPS and from corporate schemes.