Pension fund LGPS Lincolnshire has outlined the investment activities for 2025 in their annual report. A distinction is made between investments made by investment pooling company Border to Coast and other managers. Here is an overview of the most important activities:
Investments Managed by Border to Coast
- Global Equity Alpha Fund: The fund manager plans to transition assets from the externally managed Global Equity Alpha Fund to the internally managed Overseas Developed Equity Fund in 2025.
- Global Property Sub-Fund: A commitment of £85 million has been made to the Border to Coast Global Property Sub-Fund, with initial investments expected in 2025.
- Multi Factor Global Equity Fund: For passive equities (with a 15% allocation), a transition plan has been established to transfer these assets to Border to Coast’s Multi Factor Global Equity Fund, expected to launch in early 2025.
- Private Markets: Border to Coast is collaborating with the fund to develop a suitable vehicle for private markets, aiming to transition the private markets portfolio in the coming years.
Investments Not Directly Managed by Border to Coast
- Passive Equities: Currently managed by LGIM (15% allocation). Border to Coast is developing a Multi Factor Global Equity Fund, which is expected to launch in early 2025. Once this fund is deemed suitable, assets will be transitioned accordingly.
- UK Commercial Property: These assets (3.15% allocation) are managed across multiple funds. Border to Coast is finalizing its direct UK Property offering, but full transition may take several years. Initial commitments will be made as the new fund becomes available.
- UK Residential Property: Border to Coast is not currently developing a residential property offering. The fund has a 3.15% strategic allocation to this asset class. If an appropriate vehicle is developed, investments will be made, and legacy assets will be transitioned where possible.
- Overseas Property: In addition to commitments to the Border to Coast Overseas Property Fund (4.2% allocation), the fund retains legacy assets in Abrdn’s European Property Growth Fund, which is being wound up. Additional investments will be directed to the Border to Coast vehicle as they become available.
- Private Markets: Managed by Morgan Stanley (16% allocation). In June 2022, the Pension Committee decided to retain Morgan Stanley for private markets investments until Border to Coast provides a comparable vehicle. The private markets portfolio is expected to transition in the coming years.
- Infrastructure: Legacy holdings are managed across multiple funds (including a 21% allocation within private markets). These are closed-ended vehicles invested in prior to Border to Coast’s vehicles being available and will be held to maturity. New infrastructure investments are made through Morgan Stanley’s private market allocation.
