BORDER TO COAST PENSIONS BUILDS ON SUCCESS OF UK LISTED EQUITY ALPHA FUND

Following strong performance and new inflows, Border to Coast Pensions Partnership (“Border to Coast”) is seeking to appoint one, or possibly two, external managers to its £1.5bn UK Listed Equity Alpha Fund.

The UK Listed Equity Alpha Fund was launched in December 2018 to give Partner Funds exposure to UK equities though three complementary investment strategies managed by Baillie Gifford, Janus Henderson and UBS Asset Management.  Reflecting Border to Coast’s approach to responsible and sustainable investment, the Fund’s carbon footprint is significantly lower than the benchmark.

With the success of the fund, and to ensure the portfolio is well positioned for future risks and opportunities, Border to Coast is launching a search for additional managers.  Up to two managers, with a strong focus on Quality and Value investing, may be appointed.

The mandate size will be up to £500m.

Graham Long, Head of External Management at Border to Coast, said: “Since its launch to the end of March 2021 the Fund has outperformed its benchmark by over 4.5% per annum. To build on this success we would like to appoint a long-term strategic partner who shares our vision and commitment to responsible and sustainable investment.

“We expect our managers to integrate ESG considerations throughout their investment process including a strong understanding of the management of climate risk. The overall fund’s carbon footprint is significantly lower than the benchmark and we expect this to remain the case.”

The UK Listed Equity Alpha Fund was launched in December 2018 with £1.0bn assets under management and now has £1.5bn.  The fund is seeking to achieve a long-term return 2% per annum ahead of the FTSE All Share index after deduction of manager fees.

Border to Coast has produced an online presentation for managers interested in bidding for the UK Listed Equity Alpha Fund. This provides further background and information on the selection process.

The formal tender process was launched on June 8 and managers are likely to be appointed in the autumn. The Border to Coast appointment process is being supported by Mercer; any queries from managers should be directed to bordertocoast@mercer.com.