Border to Coast awards £700m EM equity mandates
Pardon the Interruption
This article is just an example of the content available to mallowstreet members.
On average over 150 pieces of new content are published from across the industry per month on mallowstreet. Members get access to the latest developments, industry views and a range of in-depth research.
All the content on mallowstreet is accredited for CPD by the PMI and is available to trustees for free.
Border to Coast Pensions Partnership has picked four specialist managers to handle assets in a new £700m emerging markets equity alpha fund.
The Leeds-based Local Government Pension Scheme investment pool has appointed Goldman Sachs Asset Management and Baillie Gifford to manage an EM ex-China equity sleeve, worth around two-thirds of the fund. The two managers will join UBS and FountainCap, which will jointly manage a dedicated China equity sleeve, making up the remaining third of the portfolio.
The fund is set to launch in spring and will seek to outperform the MSCI Emerging Markets Index by at least 2% a year net of fees over rolling three-year periods.
Border to Coast said the new fund will complement its existing internally managed emerging markets proposition and broaden partner fund access to opportunities in emerging market economies.
The pool, which has a net zero target of 2050 or sooner, said environmental, social and governance considerations and the managers’ stewardship approaches were fundamental parts of the manager selection process.
Graham Long, head of external management at Border to Coast, said “Each [selected manager] has a strong understanding of the ESG considerations in these markets and will ensure we can continue to proactively engage with portfolio holdings as an active steward of LGPS assets.”
The fund’s carbon impact is expected to be considerably below its benchmark at launch, with analysis from March 2022 suggesting its financed emissions will be between 30% to 50% lower, according to the asset pool.
