Border to Coast Pensions Partnership has launched a new £700m Emerging Market Alpha Fund on behalf of its partner funds.
The new fund complements Border to Coast’s existing internally managed emerging markets proposition and broadens partner fund access to the diverse growth opportunities in emerging market economies.
Border to Coast attributed its ability to secure “cost-effective” access to “highly specialised” and “experienced” managers for its partner funds to its collective scale.
Goldman Sachs Asset Management and Baillie Gifford were chosen to manage emerging markets ex-China equity mandates, which account 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.
As a responsible investor committed to achieving net zero by 2050 or sooner, integration of ESG factors is fundamental to the pool, Border to Coast said.
It added that it supports Just Transition, recognising the challenges for emerging markets in making the transition to a low-carbon economy and engages with its investee holdings and other stakeholders.
The carbon impact of the Emerging Market Equity Alpha Fund is expected to be considerably below its benchmark at launch, with analysis suggesting its financed emissions will be between 30% to 50% lower.
Funds participating in the Emerging Market Alpha Fund are Durham, Surrey and Tyne and Wear.
Graham Long, head of external management at 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.”
Read the digital edition of IPE’s latest magazine
No comments yet