BORDER TO COAST PENSIONS PARTNERSHIP APPOINTS EXTERNAL ASSET MANAGERS FOR ITS GLOBAL EQUITY ALPHA FUND

Leeds, 6 June 2019, Border to Coast Pensions Partnership (“Border to Coast”), one of the largest UK public sector pension pools in the UK whose assets total c. £45 billion, announces the appointment of Harris Associates, Investec Asset Management, Lindsell Train and Loomis, Sayles & Company as its external asset managers in a Global Equity Fund expected to total over £4.5bn at launch.

Border to Coast is delighted to announce the appointment of Harris Associates, Investec Asset Management, Lindsell Train and Loomis Sayles as external managers to the Border to Coast Global Equity Alpha Fund. Subject to FCA approval, the Fund is scheduled to launch later in 2019 with assets of over £4.5bn.

The appointments follow an extensive manager selection exercise undertaken by Border to Coast, with support from Mercer. Over 90 asset management firms submitted proposals which were scored for technical quality, value for money and complementarity of fit.

In addition to targeting long-term outperformance relative to benchmarks net of fees, a pooling objective is to deliver cost savings to Partner Funds. We are pleased to confirm that the fees agreed with the high-quality managers selected for this fund are expected to be materially lower than the aggregate fees our Partner Funds are currently paying on the transitioning assets.

Rachel Elwell, CEO of Border to Coast, said “We are delighted that we will be launching our externally managed global equity 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 Harris Associates, Investec Asset Management, Lindsell Train and Loomis Sayles we can both deliver lower costs and build the long-term risk-adjusted returns to meet our Partner Funds’ needs”

Kristi Rowsell, President of Harris Associates, said, “We are honoured to have been chosen by Border to Coast to be a manager for their Global Equity Alpha Fund. We look forward to sharing our long- term value investment philosophy and process along with our devotion to putting our clients first to help meet the Partner Funds’ needs.”

John Green, co-CEO, Investec Asset Management, said, ‘We look forward to building a long-term partnership with Border to Coast, delivering both returns and value for money for Partner Funds and Members. In taking an active approach and a differentiated perspective, we can contribute to meeting the challenges faced by the Partnership.’

Michael Lindsell Co-founder and Portfolio Manager said “Lindsell Train is delighted to have been selected to manage a Global Equity portfolio for such a significant UK investor as Border to Coast, with whom we believe we have a clear alignment of philosophy and investment principles. We are very much looking forward to a successful long-term partnership and to working with them on our shared goal of achieving strong investment returns and providing excellent client service on behalf of their Partner Funds.”

Chris Yiannakou, Head of EMEA Institutional Services at Loomis Sayles said, “We are extremely pleased to be selected by Border to Coast Pension Partnership as a manager for their Global Equity Alpha Fund; their commitment to their clients was evident in the rigour and depth of the selection process and we look forward to a long-term partnership of delivering performance for their 12 Partner Funds. The hallmark of the Loomis Sayles Global Equity Opportunities strategy is a long- term, differentiated, quality-focused approach to alpha generation, which aligns well with Border to Coast’s objectives.”

Border to Coast is planning to launch investment grade credit and multi asset credit funds over the next 12 months. The Request For Proposals for these mandates are expected to be issued over the course of the next quarter.