Border to Coast, one of the eight Local Government Pension Scheme funds, is set to launch a Global Multi-factor Equity Index Fund, with it expected to secure £1bn of commitments from its partner funds.
The pension pool, which is responsible for the management of £40.3bn of assets and represents £58bn, has announced that it is searching for an external asset manager to support the equity index proposition.
According to Border to Coast, the Global Multi-factor Equity Index Fund is set to launch in early 2025 and will offer the pool’s 11 partner funds access to specialist index managers.
The fund, which is expected to raise £1bn of commitments, will be overseen and managed by the pool. Once launched, the fund will seek to “outperform” the MSCI All Country World Index by at least 0.5% a year over rolling five-year periods, Border to Coast said.
Graham Long, head of external management at Border to Coast, said: “Opportunities in the multi-factor space have grown considerably and form an important component in some of our partner funds’ portfolios.
“Meaningful integration of environmental, social and governance into the investment approach and alignment with our net zero goal ahead of 2050 coupled with our role as an active steward of assets will be essential components of the new proposition.”
Currently, Border to Coast has a target to reach net zero by 2050 or sooner and targets a 66% financed emissions reduction by 2030.
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