Border to Coast Pensions Partnership has launched its £1.4bn listed alternatives fund, giving its Partner Funds more investment options.
The Fund invests in a diverse spectrum of sectors, including renewable energy, digital infrastructure, specialty healthcare, real estate, private equity, and alternative finance. These industries are based on long-term structural themes. The current portfolio provides investors with access to 40 GW of wind and 14 GW of solar power to support the net-zero transition; 160,000 mobile communication towers to benefit from the ongoing digital revolution and 2,400 healthcare facilities to support the world’s ageing population.
The launch of this internally managed fund offers Border to Coast’s partner funds cost-effective access to attractive risk-adjusted returns and inflation protection over the long term. The partner funds involved as initial investors are East Riding, Durham, North Yorkshire, South Yorkshire, and Surrey. 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.
Border to Coast portfolio manager Ryan Boothroyd says: “This Fund marks a significant milestone for Border to Coast. It gives our Partner Funds cost-effective access to a broad range of sectors to support the building of diverse and resilient investment portfolios. As long term, responsible investors, we will use our expertise to provide 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.”
Pensions Authority director of South Yorkshire George Graham says: “The Listed Alternatives Fund is a key addition, providing us with access to public alternative assets, complementing our investments in private markets. Border to Coast has again demonstrated the value it can deliver for its Partner Funds in designing and managing bespoke offerings that enable us to implement our investment strategies in a cost-effective way.”
