The Local Government Pension Scheme (LGPS) pool has secured support from the Cheshire, Leicestershire, Nottinghamshire, and West Midlands funds. After a tender process involving more than 80 fund managers, BMO Global Asset Management and Western Asset Management are to share a multi-asset credit mandate.

LGPS Central manages £23 billion for eight pension schemes.

Gordon Ross, fixed income CIO at LGPS Central, said multi-asset credit could provide yield enhancement compared to traditional bonds and that the single fund would allow partner schemes to access to the asset class but with lower costs, fewer manages and less of a governance burden.

“It will provide allocation to a broad breadth of strategies that would not be investable as a standalone asset, and our fund managers will have the flexibility to move opportunistically between those sectors quickly and efficiently.”