£46bn pension pool picks managers for new fund

Border to Coast Chief Investment Officer Daniel Booth

The Leeds-based £46 billion Border to Coast Pensions Partnership has appointed four specialist managers for its Multi-Asset Credit Fund.

Subject to FCA approval, the fund is scheduled to launch in the first half of 2021 with assets of £2.7 billion.

Border to Coast is one of the largest public sector pension pools in the UK and involves 11 local government pension scheme funds from Cumbria, Durham, East Riding, North Yorkshire, South Yorkshire, Teesside, Tyne and Wear, Lincolnshire, Warwickshire, Bedfordshire and Surrey.

The successful specialist managers for its Multi-Asset Credit Fund are:

  • Wellington Management – Global High Yield
  • Barings – Global Syndicated Loans
  • PGIM Fixed Income – Securitised Credit
  • Ashmore – Emerging Market Debt

“The appointments follow an intensive manager selection exercise undertaken by Border to Coast, with support from Mercer,” said Border to Coast.

“Over 110 managers applied and were assessed for technical quality, value for money and complementarity of fit across the portfolio.

“Significant emphasis was placed on the quality of the investment approach as well as the extent to which responsible investment factors were embedded in the investment process.”

Border to Coast chief investment officer Daniel Booth said: “The Multi-Asset Credit Fund will provide our Partner Funds with access to the full spectrum of credit assets via high-quality and cost-effective active management.  

“The selected managers are expected to make a strong contribution to our purpose by making a positive difference to investment outcomes for the LGPS. 

“They represent excellent value for our Partner Funds relative to similar investment options in the market.”

Stefan Haselwandter, Director, Global Relationship Group at Wellington, said: “We are honoured to have been selected by Border to Coast to manage this prestigious high yield mandate and look forward to helping deliver on the long-term investment objectives of the Partner Funds.

“Wellington’s partnership with the LGPS on both bond and equity mandates is now in its third decade and we are proud of the trust our many Pool and Fund clients have placed in us.”

James Anderson, Head of Institutional Investments at Barings, said:  “We are delighted that Border to Coast Pensions Partnership has selected Barings to manage their global loan mandate.

“We look forward to bringing our deep credit expertise and resources to this strategic partnership and delivering strong risk-adjusted returns for the ultimate benefit of the Partner Funds and their underlying scheme members.”

Sarah McMullen, Head of EMEA Client Advisory at PGIM Fixed Income, said: “We are thrilled to have been chosen by Border to Coast to manage the securitised credit component of their multi-asset credit fund.

“We look forward to applying our long-standing market experience and working in partnership to help meet the objectives of the underlying partner funds”.

Christoph Hofmann, Global Head of Distribution at Ashmore, said: “We are honoured to have been appointed by Border to Coast Pensions Partnership to manage the Emerging Markets Debt segment of their Multi-Asset Credit portfolio.

“We are delighted to have been given the opportunity to shape the evolution of their Emerging Markets Debt exposure and look forward to contributing to the long-term success of this landmark structure in tandem with the Border to Coast team”.