LGPS Pool Border to Coast has reported a significant boost of its assets amid ongoing pressures from the new Labour government to bring all listed assets into the management of pools.
The Leeds-headquartered pool, which manages the assets of 11 partner funds across the UK, has reported a significant boost to its assets with £52.3bn of its £64bn in partner fund assets now being pooled. This marks a total increase of £12bn compared to last year, bringing the total of pooled assets to 82%, according to the pool’s annual Reports and Accounts.
This comes as the chancellor for the new Labour government, Rachel Reeves, has reiterated her commitment to see all listed LGPS assets pooled by March 2025, a deadline set by her predecessor Jeremy Hunt. Border to Coast did not disclose whether it expected to meet this deadline.
South Yorkshire Pension Fund, one of the largest shareholders, revealed in its latest holdings update published in mid-July that virtually all of its liquid assets were managed by the pool, barring some marginal positions in UK Linkers and cash. However, Tyne and Wear Pension Fund, the largest shareholder in terms of member numbers, still holds some legacy assets in passive strategies offered by Legal and General, according to its latest Investment Strategy Statement. It does use Border to Coast’s procurement services for its passive holdings, the fund revealed.
Over the past year, Border to Coast has attracted significant commitments to its private market offering with the launch of a new UK Opportunities and a Climate Opportunities strategy. It has now committed some £12bn to private market strategies.
“Just five years into our pooling journey, our partner funds have continued to place their trust in us,” said Rachel Elwell, CEO of Border to Coast. She expects a further uptake in the pooling of assets as Border to Coast embarks on the launch of its new real estate offering and other fund launches planned in the coming year.
