Border to Coast Pensions Partnership, a UK local authority pooled pensions asset manager, is to launch a £1.3 billion Listed Alternatives Fund, which will provide new investment opportunities for its 11 local government partner funds.
The fund, due to launch in early 2022, will provide a building block for partner funds’ long-term asset allocation to global alternatives and will hold listed securities that provide exposure to infrastructure, specialist real estate, private equity and alternative credit.
Border to Coast has an existing £5.7 billion private markets investment programme.
Ryan Boothroyd, portfolio manager at Border to Coast, said: “The Listed Alternatives Fund will give our partner funds access to a hugely diverse and cost-effective portfolio of alternative assets. We will take advantage of our long-term investment horizon by selecting 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.”
The portfolio will be built around long-term structural themes such as the green energy transition, the data revolution, and urbanisation and direct investment towards the underlying assets that are likely to benefit. This includes renewable energy generation, energy storage, data centres, fibre optic cables, logistic hubs and healthcare facilities.
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.
The Leeds, UK-based asset manager is owned by 11 local government pension schemes, with combined total assets of £55 billion. Partner funds include Bedfordshire, Cumbria, Durham, East Riding, Lincolnshire, North Yorkshire, Surrey, South Yorkshire, Teesside, Tyne and Wear, and Warwickshire.
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