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London Borough of Newham Pension Fund appoints high yield credit manager

28 April 2017 in Council and democracy and Finance
The London Borough of Newham Pension Fund (“Newham”) has selected a manager to operate their allocation to high yield credit. Newham, advised by consultant bfinance, have appointed Robeco to manage their Global High Yield Credit mandate.
Newham believe high yield credit offers investors appealing long term diversification from other asset classes and attractive risk adjusted returns. This new asset class in Newham’s portfolio will provide additional income streams to manage its liabilities and provide continued positive cash flows.

Speaking about the manager appointments, Councillor Forhad Hussain, Chair of Newham’s Investment and Accounts Committee, said, “The addition of this new asset class has been possible due to nimble governance and transparency that the Committee has developed through trustee training and member engagement. Newham has again shown the importance of being ahead of the curve by building a robust strategic asset allocation in response to economic uncertainty.”

Councillor Forhad Hussain continued: “High yield credit has grown into an established asset class that we believe will complement our existing portfolio of investments and help manage volatility. This is our first allocation to the asset class and we have identified one manager that we believe can provide our portfolio with investments that complement each other and Newham Pension Fund’s portfolio as a whole.”

Mathias Neidert, Head of Public Markets Research at bfinance: “The solution proposed to Newham Pension Fund met all the requirements. Robeco offers a strong global credit platform that has been successful in navigating the challenging market environment of the last few years. We are glad that we managed to secure an allocation to this leading Global High Yield Bond strategy before it closed to new investors.”

Quote (by Peter Walsh, Head of Robeco UK):
“Robeco is very pleased that the London Borough of Newham is the latest Pension Fund to support our global credit platform and we look forward to working closely with them for many years to come. Our highly experienced credit team now manages GBP 19.7 billion on behalf of clients and our sustainability integration is resonating well within the LGPS market.”

About Robeco:
Robeco Institutional Asset Management B.V. (Robeco) is a pure play international asset manager founded in 1929. It currently has 16 offices worldwide and its headquarters are located in Rotterdam, the Netherlands. Through its unique integration of fundamental, sustainable and quantitative research, Robeco is able to offer both institutional and private investors an extensive selection of active investment strategies, covering a broad range of asset classes. As at 31 December 2016, Robeco had GBP 118 billion in assets under management, 70% of which were institutional. Robeco is a subsidiary of Robeco Group which had assets under management of GBP 241 billion as at 31 December 2016.