Institutional Investors

Strathclyde gives bond portfolio absolute return edge

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Strathclyde pension fund - which manages the pension fund assets of Glasgow City Council in Scotland - has restructured its bond portfolio, shifting to an absolute return basis.

The pension fund, which has total assets of $12 billion, awarded two mandates worth $1 billion. These went to PIMCO, which will run $711 million, and Threadneedle, which will run $356 million.

Both managers will be required to deliver returns of 1% to 3% per annum over the sterling three month LIBOR cash benchmark.

The mandate had originally been planned to be around $2 billion but was scaled back considerably.