PIC appoints Wellington to manage US muni bonds portfolio

Written by Adam Cadle

18/11/2020

Pension Insurance Corporation (PIC) has appointed Wellington Management (Wellington) to manage its US municipal bonds portfolio.

PIC has approximately £700m invested in taxable US muni bonds, out of a total portfolio of £47.7bn. The insurer has invested in muni bonds since 2016, which have characteristics for matching PIC’s long-term liabilities. "Muni bonds provide a valuable complement to PIC’s corporate credit holdings and it is expected that the allocation to this sector will continue to grow over time," PIC said.

Wellington joins PIC’s existing panel of fixed income managers, alongside Janus Henderson Investors, J.P. Morgan Asset Management, Schroders Investment Management, and 24 Asset Management.

Rob Groves, chief investment officer at PIC, said: “We are very pleased to have appointed Wellington, not only for their expertise in the US muni bond market, but also for their ESG and climate risk expertise. These are particular areas of focus for us and we will continue to develop our expertise in this area with help from our expert managers.”

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