Border to Coast searches for manager to support multi-factor fund

Border to Coast Pensions Partnership (Border to Coast), the largest LGPS pool in the UK, is searching for an external asset manager to support its first equity index proposition, which is expected to launch with more than £1 billion of Partner Fund assets.

Set to launch in early 2025, the Global Multi-factor Equity Index Fund will offer Partner Funds cost-effective access to a specialist index manager, overseen and managed by the Border to Coast investment team.

As the first index fund launched by the pool, it will complement Border to Coast’s existing range of actively managed listed equity strategies. Delivery of the proposition supports Partner Funds to implement long-term investment strategies and enables the pooling of assets currently held in external passive strategies.

Graham Long, Head of External Management, Border to Coast, said: “The launch of our first index fund marks a further expansion in our capabilities as we build on the strong platform of propositions we have created for Partner Funds.

“Opportunities in the multi-factor space have grown considerably and form an important component in some of our Partner Funds’ portfolios. Meaningful integration of ESG into the investment approach and alignment with our net zero goal ahead of 2050 coupled with our role as an active steward of assets will be essential components of the new proposition.”

The new strategy will reflect a mix of investment style factors and operate in line with a science-based climate transition pathway aligned with the net zero commitments made by Border to Coast and Partner Funds.

Once launched, the Fund will seek to outperform the MSCI All Country World Index by at least 0.5% a year (net of fees) over rolling five-year periods.

Border to Coast has produced an online presentation for managers interested in tendering for the Global Multi-factor Equity Index Fund providing further information about the selection process. This is available on Border to Coast searches for manager to support mutli-factor fund

As an organisation wholly owned by public sector entities, Border to Coast is subject to public procurement rules. The formal tender process will be launched on Monday 24 June 2024, with the successful manager(s) expected to be appointed in Q4 2024. Full details will be in the ITT (Invitation to Tender) documents available from bordertocoast@mercer.com