Border to Coast Pensions Partnership, one of the largest UK pension pools, is set to launch a c.£1.3bn Listed Alternatives Fund, unlocking new investment opportunities for its 11 local government Partner Funds.
Scheduled to launch in early 2022, it will provide a key strategic building block for the Partner Funds’ long-term asset allocation to global alternatives, providing a liquid, diversified source of returns.
The Fund, to be managed internally, will hold listed securities that provide exposure to infrastructure, specialist real estate, private equity and alternative credit, complementing Border to Coast’s existing £5.7bn private markets investment programme and providing funding for critical projects in the UK and beyond.
The portfolio will be built around key long-term structural themes such as the green energy transition, data revolution, and urbanisation and direct investment towards the underlying assets that look set to benefit. This includes renewable energy generation, energy storage, data centres, fibre optic cables, logistic hubs and healthcare facilities.
Ryan Boothroyd, Portfolio Manager, 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 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.
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