Border to Coast Pensions Partnership has selected four specialist managers, including Goldman Sachs Asset Management, to support its new £700m Emerging Markets Equity Alpha Fund.
Due to launch in spring 2023, the fund aims to broaden Border to Coast’s partner funds’ access to “diverse global growth opportunities” in emerging market economies.
Border to Coast has selected Goldman Sachs and Baillie Gifford to manage an emerging markets ex-China equity sleeve, accounting for around two-thirds of the fund. It has also chosen UBS and FountainCap, who will jointly manage a dedicated China equity sleeve, making up around a third of the fund.
Graham Long, Border to Coast’s head of external management, said: “Our selected managers have an extensive presence in emerging markets, and we believe this specialisation – amplified by how we have structured the fund – strengthens our partner funds’ access to investment opportunities that deliver sustainable, long-term risk-adjusted returns.”
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According to the Local Government Pension Scheme (LGPS) pool, the fund’s carbon impact is expected to be considerably below its benchmark at launch, with analysis (as at 31 March 2022) suggesting its financed emissions will be between 30% to 50% lower.
Jason Freeman, Goldman Sachs’ head of LGPS, said: “We look forward to bringing our global research, technology and investment resources to the service of Border to Coast and their partner funds.”
Chris Murphy, Baillie Gifford’s head of LGPS, said: “We are delighted that our emerging markets ex-China strategy is available to the partner funds through their investment in Border to Coast’s Emerging Markets Equity Alpha Fund.”
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