Border to Coast launches £1.4bn Listed Alternatives Fund
Posted on March 17th, 2022
Border to Coast Pensions Partnership (“Border to Coast”), one of the UK’s largest pension pools, has launched its £1.4bn Listed Alternatives Fund, expanding the investment opportunities available to its Partner Funds.
The Fund provides exposure to a diversified portfolio of investments in sectors such as renewable energy, digital infrastructure, specialist healthcare, real estate, private equity, and alternative credit. These sectors tap into key long-term structural themes. For example, the current portfolio gives investors access to 40GW of wind power and 14GW of solar power to enable the net-zero transition; 160,000 mobile communication towers that look set to benefit from the ongoing digital revolution; and 2,400 healthcare facilities needed to support the ageing global population.
The successful launch of this internally managed fund offers Border to Coast’s Partner Funds cost-effective access to attractive risk-adjusted returns and inflation protection over the long term. The Partner Funds involved as initial investors are East Riding, Durham, North Yorkshire, South Yorkshire, and Surrey.
Ryan Boothroyd, Portfolio Manager, Border to Coast, said:
“This Fund marks a significant milestone for Border to Coast. It gives our Partner Funds cost-effective access to a broad range of sectors to support the building of diverse and resilient investment portfolios. As long term, responsible investors, we will use our expertise to provide high-quality investment opportunities that tap into themes we expect to shape the future, such as renewable energy generation and transmission, digital connectivity, and urbanisation.”
George Graham, Director of South Yorkshire Pensions Authority said:
“The Listed Alternatives Fund is a key addition, providing us with access to public alternative assets, complementing our investments in private markets. Border to Coast has again demonstrated the value it can deliver for its Partner Funds in designing and managing bespoke offerings that enable us to implement our investment strategies in a cost-effective way.”
The Fund aims to provide a net total return in excess of the MSCI All Country World Index over a rolling five-year period, with lower aggregate costs than traditional private alternative investments.
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