Border to Coast names asset managers for £1.2bn equity fund
Border to Coast Pensions Partnership has named its first three asset managers to oversee a circa £1.2bn UK equity portfolio.
The £46bn Local Government Pension Scheme (LGPS) pool has appointed Baillie Gifford, Janus Henderson, and UBS Asset Management to manage its UK-listed equity alpha fund, which will represent around 2.6% of its overall assets.
The fund is due to launch later this year once approval has been granted by the Financial Conduct Authority, and will aim to achieve a 2% per annum long-term return ahead of the FTSE All-Share Index once manager fees have been deducted.
Baillie Gifford and UBS will be benchmarked against the All-Share Index, while Janus Henderson's mandate will be focused on smaller companies.
The appointments come after a competitive tender including more than 30 asset managers was conducted over the summer, with applicants assessed on technical quality, value for money, and complementarity of fit.
Border to Coast chief executive Rachel Elwell said she was delighted to soon be launching the fund with a "strong line-up" of investment managers.
"It is a testament to the commitment of the asset management community to the LGPS that we received so many high-quality submissions," she said. "I am confident that, with the combination of Baillie Gifford, Janus Henderson and UBS Asset Management, we can begin to build up the long-term returns our partner funds need."
In July, Border to Coast became the final of the eight LGPS pools to launch after missing the 1 April deadline for transitioning assets. It operates its own authorised contractual scheme (ACS), having been given approval in June, and manages assets for 12 partner local authority funds: Bedfordshire, Cumbria, Durham, East Riding, Lincolnshire, Northumberland, North Yorkshire, South Yorkshire, Surrey, Teesside, Tyne & Wear, Warwickshire.
The pool said it will soon launch a search for managers of a global equity fund, with requests for proposals to be issued in the course of the next quarter.
Last month, Border to Coast appointed Daniel Booth as its chief investment officer, working alongside John Harrison, who had been filling in on an interim basis, until Q4 this year.
More on Investment
A beacon of hope: How the PMI will evolve in a post-Covid world
PMI president Lesley Alexander and the institute's immediate past-president Lesley Carline talk about the challenges of Covid-19 and the opportunities and challenges the industry faces in the future.
PASA looks to ramp up pensions admin standards with Deloitte partnership
The Pensions Administration Standards Association (PASA) has announced global consultant Deloitte as its expert knowledge provider for data.
Five stories you may have missed this week
This week’s top stories included further support for an overhaul of the pension tax regime, while the Treasury confirmed the Retail Prices Index will be reformed by 2030.
XPS Pensions posts 9% uptick in H1 revenues
XPS Pensions posted a 9% increase in revenues during the six months to 30 September – a rise driven by a number of large client wins.
Women in Pensions Awards 2020 - The Winners
Here they are - the winners of the 3rd annual Women in Pensions Awards...
