Border to Coast issues China mandate

Border to Coast is looking to appoint a specialist China equity manager to add to its existing emerging market equity fund.

The fund, which is currently managed entirely internally, is expected to allocate around a third of its assets to the China manager, a mandate equivalent to between £200-300 million.

Following consultation with its partner funds, the public sector pool is seeking to create two separate sleeves within the emerging market equity fund, one for China – which will be benchmarked to the FTSE Total China Index – and another internally-managed sleeve that will use FTSE Emerging Markets as its benchmark.

Daniel Booth, Chief Investment Officer at Border to Coast, said “With the increasing weight of China in the Emerging Markets benchmark, reflecting trends in the wider market, we felt it was appropriate to seek a specialist partner who will provide us with a local market presence.”

The emerging markets equity fund was launched in 2018 with £600 million. After restructuring post the fund launch, the fund has outperformed its benchmark by 0.5% in the 15 months to 31 March this year.