Border to Coast appoints three fund managers to run UK equity mandate
0LGPS pool Border to Coast have appointed three asset managers to look after a UK equity mandate totalling around £1.2bn of investments.
Border to Coast has appointed Baillie Gifford and UBS Asset Management to manage mandates to be measured against the FTSE All Share Index, while Janus Henderson will focus on smaller companies.
The firms were chosen after more than 30 asset management firms submitted proposals which were scored for technical quality, value for money and complementarity of fit.
Rachel Elwell, chief executive of Border to Coast, said “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.”
Subject to Financial Conduct Authority approval, the UK equity fund is scheduled to launch later in 2018 with assets of around £1.2bn.
The fund will seek to achieve a long-term return 2% pa ahead of the All Share Index after deduction of manager fees.
In August, the pool launched its first two sub-funds with £7bn of assets from three partner councils.
Equity investments previously managed in-house at the three member funds were transferred to the new Border to Coast Overseas Developed Fund and a UK Listed Equity Fund.
Meanwhile this week, the four funds invested in London Pension Partnerships’ GLIL global infrastructure fund have committed an additional £550m.
Additional investments by Greater Manchester Pension Fund (£150m), Merseyside Pension Fund (£150m), West Yorkshire Pension Fund (£125m) and London Pension Fund Authority (£150m) bring the size of the fund to £1.8bn.
The three northern funds made the investment through the Northern Pool, meaning GLIL will now account for around 3% of the LGPS pool’s £46bn under management.
Ian Greenwood, chair of the Northern Pool, said: “GLIL already leads the way in meeting Government ambitions for local authority pension funds investing in infrastructure projects.
“Now, by increasing our scale in this way, we not only are better able to work alongside some of the most sophisticated infrastructure investors in the world, we also have greater access to the widest pool of available investments at the best possible price.”
GLIL’s portfolio includes minority stakes in Anglian Water, the Clyde windfarm project and social infrastructure company Semperian.
