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.