Nottinghamshire County Council Pension Fund has awarded Kames Capital a £300m buy-and-hold fixed income mandate.
Kames will invest the cash in corporate bonds targeting a yield of 1.25% above LIBOR after fees. The returns will fund Nottingham’s infrastructure investment over the next five years.
Nottinghamshire County Council Pension Fund group manager of finance Keith Palframan said the plan is to make staged investments in local infrastructure from March 2018 to the end of 2021.
“Kames Capital has created a customised corporate bond portfolio to meet our objectives for liquidity, security and performance over this period,” he added.
Kames Capital director of institutional business Peter Ball said the firm has more than 20 years’ experience of managing buy-and-hold fixed income portfolios for pension schemes.
“At a time of great change for all local government pension schemes we are delighted to have worked closely with Nottinghamshire County Council to develop a solution which supports the pension fund’s long-term programme of infrastructure investment,” he added.
This is not Nottinghamshire County Council Pension Fund’s first dealing with Kames. The scheme invested in the investment manager’s secondary property scheme in October, lured by falling prices and targeted returns of 7% to 8% a year. It invested a combined £55m into the fund along with Leicestershire County Council Pension Fund.
