Leeds pension pool in £700m emerging markets bet

Graham Long

The Leeds-based £58 billion Border to Coast Pensions Partnership, the largest UK local government pension scheme (LGPS) pool, has launched a new £700 million Emerging Markets Equity Alpha Fund on behalf of its partner funds.

Border to Coast said the new fund complements its existing internally managed emerging markets proposition and broadens partner fund access “to the diverse growth opportunities in emerging market economies.”

Goldman Sachs Asset Management and Edinburgh-based Baillie Gifford were chosen to manage emerging markets ex-China equity mandates accounting for around two-thirds of the fund.

UBS and FountainCap will each manage dedicated China equity mandates, making up around a third of the portfolio.

Funds participating in the emerging market equity alpha fund are Durham, Tyne and Wear and Surrey.

Graham Long, Head of External Management, Border to Coast, said: “This new fund demonstrates our responsiveness to the needs and ambitions of our Partner Funds.

“The extensive experience of our selected managers in emerging markets and responsible investment, along with the way we have structured the fund, strengthens our Partner Funds’ access to investment opportunities that deliver sustainable, long-term risk-adjusted returns.”