Railpen, one of the pension funds in the UK, has awarded a securitised credit mandate to Neuberger Berman – a private, independent, and employee-owned investment manager.
It builds on an existing partnership between the two firms and “will provide Railpen with additional exposure to liquid securitised credit.”
The mandate, structured as a Qualifying Investor Alternative Investment Fund (QIAIF) within “the Neuberger Berman Investment Funds II plc umbrella, primarily invests in securitised debt securities – including collateralised loan obligations (CLOs), asset-backed securities (ABS) commercial mortgage-backed securities (CMBS) and mortgage-backed securities (RMBS).”
The portfolio will be “co-managed by Joe Lynch, senior portfolio manager for multisector fixed income, Pim van Schie, senior portfolio manager for structured credit, and Jose Pluto, portfolio manager for securitised products.”
Neuberger manages over “$50bn in securitised credit globally.”
Railpen, which manages around “£34bn of assets on behalf of over 350,000 members, is committed to investing securely and sustainably.”
The continued partnership with Neuberger “reinforces Railpen’s commitment to securing its members’ future.”
The mandate adds to an existing partnership “between Railpen and Neuberger, which saw a £2bn multi-asset credit strategy launch in July 2024.”
The additional allocation to securitised credit “will increase this partnership to above £3bn.”
Craig Heron, Director of Public Markets at Railpen, says:
“Neuberger’s expertise in credit helps Railpen to deliver long-term value for our members. In today’s complex investment environment, it is essential to work with partners who not only bring strong technical capabilities but also understand the evolving needs of institutional investors.”
As mentioned in the announcement, Neuberger Berman is “an employee-owned, private, independent investment manager founded in 1939 with over 2,800 employees in 26 countries.”
The firm manages $538 billion of “equities, fixed income, private equity, real estate and hedge fund portfolios for global institutions, advisors and individuals.”
Neuberger’s investment philosophy is “founded on active management, fundamental research and engaged ownership.”
As noted in the update, Railpen Limited acts “as the administrator of the railways pensions schemes, and Railpen Pension Investments Limited (RPIL) as the investment manager and they are responsible for the management of around £34bn.”
They run the railways pension schemes “on behalf of their parent, the Railways Pension Trustee Company Limited (RPTCL).”
RPIL is authorised and regulated by the Financial Conduct Authority (FCA).