US bond powerhouse Pimco has won the contest to manage a significant chunk of a go-anywhere credit fund being launched by one of the UK’s big new public pension fund managers, as the sector continues to consolidate and overhaul its investments.

The Border to Coast Pensions Partnership, which is consolidating £45bn of pension investments for 12 councils stretching from Surrey to Northumberland, said in a statement on 8 January it recruited Pimco to run the “core” part of its embryonic multi-asset credit fund. It has previously indicated this is likely to be worth between £800m and £1.2bn.