The Border to Coast Pensions Partnership has launched a £1.4bn listed alternatives fund that offers exposure to assets with long-term outlooks such as renewable energy, healthcare real estate and digital infrastructure.
Border to Coast said that the fund would be internally managed and offers “cost-effective access to attractive risk-adjusted returns and inflation protection over the long term”. Partner funds involved as initial investors are: East Riding, Durham, North Yorkshire, South Yorkshire and Surrey.
The fund aims to provide a net total return in excess of the MSCI All Country World Index over a rolling five-year period, with lower aggregate costs than traditional private alternative investments.
Ryan Boothroyd, portfolio manager at Border to Coast, said the fund marked a “significant milestone” for the pension pool.
“It gives our partner funds cost-effective access to a broad range of sectors to support the building of diverse and resilient investment portfolios. As long-term, responsible investors, we will use our expertise to provide high-quality investment opportunities that tap into themes we expect to shape the future, such as renewable energy generation and transmission, digital connectivity and urbanisation.”
George Graham, director of South Yorkshire Pensions Authority, added: “The listed alternatives fund is a key addition, providing us with access to public alternative assets, complementing our investments in private markets.”
Border to Coast is one of the largest of the LGPS pension pools, with 11 partner funds and combined assets of £55bn. Currently, its equity and fixed income investments are split equally between internal and external management.
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