Scottish Widows has clinched a two-way fund management deal with top five US insurer and 401(k) pensions player New York Life.
Widows chief executive officer Orie Dudley says the deal with NYL fund management subsidiary MacKay Shields could be the "ultimate joint venture."
MacKay Shields will manage Widow's High Income Bond Isa being launched on August 16. In return Widows is set to manage a global equity fund on behalf of the US firm.
The fund will invest up to 80 per cent in US corporate bonds, with the remainder in UK and European government debt. It has a target yield of 8.3 per cent.
Widows says it does not have the depth of expertise to invest in the US corporate bond market but will market and administer the product.
New York Life has £75bn under management and MacKay Shields £20bn.
Scottish Widows Fund Management managing director Jamie MacLeod says: "You need a big team of analysts to manage this type of fund. The US corporate bond market is more mature and liquid than the UK's or Europe's."