BORDER TO COAST PENSIONS PARTNERSHIP APPOINTS FIRST EXTERNAL ASSET MANAGERS

Leeds, 8 October 2018, Border to Coast Pensions Partnership (“Border to Coast”), one of the largest UK public sector pension pools in the UK whose assets total c. £46 billion, announces the appointment of Baillie Gifford, Janus Henderson and UBS Asset Management as its first external asset managers in a UK Equity Fund expected to total c. £1.2bn at launch.

Border to Coast is delighted to announce the appointment of Baillie Gifford, Janus Henderson and UBS Asset Management as external managers to the Border to Coast UK Listed Equity Alpha Fund.  Subject to FCA approval, the Fund is scheduled to launch later in 2018 with assets of c. £1.2bn.

The appointments follow an extensive manager selection exercise undertaken by Border to Coast over the summer, with support from Mercer.  Over 30 asset management firms submitted proposals which were scored for technical quality, value for money and complementarity of fit.

The Fund will seek to achieve a long-term return 2% pa ahead of the FTSE All Share index after deduction of manager fees.  The mandates for Baillie Gifford and UBS Asset Management will be benchmarked against the All Share index, while the Janus Henderson mandate will focus on smaller companies.

Rachel Elwell, CEO of Border to Coast, said “We are delighted that we will be launching our first externally managed Sub-Fund with such 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. 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”

Tom Wright, Director said “Baillie Gifford is delighted to have been appointed to manage part of Border to Coast’s UK Listed Equity Alpha Fund.  We have managed assets for its Partner Funds for nearly twenty years, adding significant value in the process. We now look forward to working in partnership with the pool to continue to deliver excellent long term returns in a responsible, sustainable and transparent manner.”

Mark Fulwood, Head of Institutional Business Development – UK & Ireland, said “We are very proud to have been chosen to manage a UK Small-Cap equity mandate for the Border to Coast Pensions Partnership following their robust UK Equity selection exercise.  We very much look forward to a successful long-term partnership with the Border to Coast team on behalf of their Partner Funds”

Miles Illingworth, Director, UK Institutional, said “We are delighted and extremely proud to be working alongside Border to Coast on their UK Listed Equity Alpha strategy. Being awarded this mandate is a further endorsement of UBS Asset Management’s deep commitment to LGPS and our Active Equity capabilities. We look forward to working in partnership with the Border to Coast pool over the coming years.”

Border to Coast is planning to launch an externally managed global equity fund in 2019.  The RFP for these mandates is expected to be issued over the course of the next quarter.