£1.5bn Sterling Index Linked Bond Fund launched

Border to Coast Pensions Partnership (“Border to Coast”), one of the largest UK pension pools, has launched its latest fixed income product with a £1.5bn Sterling Index Linked Bond fund. This will provide Partner Funds with access to sterling-denominated index linked gilts and investment grade corporate bonds.

This will be the first fixed income fund directly managed by Border to Coast.  The transition to an internally managed fund allows Border to Coast to generate aggregate cost savings for the investors. The Partner Funds involved as initial investors were Durham, North Yorkshire and South Yorkshire.

Mark Lyon, Head of Internal Management, at Border to Coast said:

“The launch of our Sterling Index Linked Bond Fund demonstrates the skills and capabilities within Border to Coast to deliver effective investment solutions to our Partner Funds.  The importance of this fund is highlighted by the sizeable initial commitments received from Durham, North Yorkshire and South Yorkshire who have supported us in the development and launch of this Fund despite the challenges of the COVID pandemic.”

Councillor Mick Stowe, Chairman of South Yorkshire Pension Authority, said:

“Border to Coast is perhaps unique in the way it involves its customers in the development and design of cost-effective investment options across a wide variety of asset classes.  We’d like to thank the team in how they have worked with us in designing this fund – which is a key part to allow us to deliver our long-term investment strategy.

Transition management services were provided by BlackRock, with Inalytics acting as transition advisor.