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SAUL appoints absolute return bond manager

08 October 2013

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The Superannuation Arrangements of the University of London (SAUL) pension scheme has appointed Payden & Rygel to manage a £80m absolute return fixed income mandate.

The mandate will cover absolute return bonds and will use a variety of investment strategies including high yield, emerging markets and mortgage-/asset-backed securities.

Penny Green, SAUL chief executive, said: "Throughout our selection process Payden & Rygel's robust yet pragmatic and solution-driven approach was clear."

She added: "We were also particularly impressed by their tailored approach and the customisation they could offer to the portfolio to suit our specific needs. We look forward to working with them."

Payden & Rygel senior portfolio director and head of business development for UK and Europe Mark Stanley said that the strategy that the team developed for SAUL aims to generate positive returns above cash over any calendar year, unlike a conventional benchmark orientated mandate.

He added: "We are in an environment of low fixed income yields and this is encouraging investors to look at absolute return approaches more closely.

"SAUL is a large and sophisticated scheme making this appointment a strong endorsement of our approach. We are looking forward to working with them and getting the opportunity to showcase the full range of our capabilities."

First published 08.10.2013

monique_simpson@wilmington.co.uk