Strathclyde awards £750m in mandates with ‘enhanced yield’ strategy

first_imgStrathclyde Pension Fund is to award £750m (€969m) worth of multi-asset credit mandates as part of the local authority fund’s overhaul of its strategic asset allocation.The decision to award four mandates comes after the £15.6bn Strathclyde decided to double its allocation to short-term enhanced yield (STEY) strategies to 15%The new STEY mandates, which will be funded through a 10-percentage-point cut in the fund’s equity allocation, were tendered late last year.Following the tender, the fund’s pensions committee this week decided to appoint Babson Capital and Oak Hill Capital to oversee two multi-asset credit mandates worth £300m and £150m, respectively. Both mandates will focus on high-yield debt and syndicated loans, the report to the pensions committee said, adding that it hoped to seed both mandates within two months of the contracts being finalised.The committee also decided to split a further £300m private debt award between the Alcentra Clareant European Direct Lending Fund II and the Babson Global Private Loan Fund, with the latter beating Partners Group to its share of the mandate.Strathclyde said the Alcentra allocation would be funded “over time”, and that the Babson allocation would be split between the Babson Global Private Loan Fund, due to close at the end of March, and its successor fund, set to launch before the end of June.As part of the new STEY strategy, Strathclyde also signed off a new investment approach for a £1bn mandate managed by PIMCO.The current PIMCO Absolute Return Strategy (PARS) targeted returns of 1.75% above the three-month LIBOR rate over a three-year period, below the minimum 4% cash outperformance desired by the local authority fund as part of the new strategy.The fund’s pensions committee decided to shift the portfolio to the PARS III strategy, which targeted an outperformance of bonds of up to 5%.As part of a parallel deployment of capital to long-term enhanced yield strategies, Strathclyde has also boosted its commitment to a local property fund and allocated £50m to the first in-house fund launched by the Pensions Infrastructure Platform.last_img read more

Dubai Desert Classic: Dominant Bryson DeChambeau wins in record fashion

first_imgBryson DeChambeau romped to victory at the Dubai Desert Classic on Sunday, setting a new tournament record of 24 under par.The American held a narrow one-shot lead over defending champion Li Haotong entering the final round at the Emirates Golf Club, but he carded a superb eight-under 64 to finish seven strokes clear of Matt Wallace. An eagle at the par-five 10th and another birdie at the next got him going again, and even the disappointment of a bogey at the 12th was swiftly forgotten with gains at 13 and 14.He claimed the outright record with a birdie at the 17th, by which time the destination of the trophy had long been decided.MISSION ACCOMPLISHED Bryson DeChambeau wins the #ODDC19 by seven shots with a tournament record score of 24 under par. pic.twitter.com/AImrAiAD7f— The European Tour (@EuropeanTour) January 27, 2019Three-time champion Ernie Els, whose first triumph at this event came 25 years ago, carded 71 to finish tied for 13th on 14 under. Li had triumphed 12 months ago on 23 under, but even matching that feat this time around would not have been enough for the Chinese, who could only make a 71 as he finished in a five-way tie for third on 16 under, alongside the likes of former champions Sergio Garcia and Alvaro Quiros, and Ian Poulter.DeChambeau got off to a flying start, making birdies at each of the first three holes before cooling off with six pars to finish his front nine. Related News Farmers Insurance Open: Justin Rose ties 54-hole record to take lead into final roundlast_img read more