Border to Coast Pensions Partnership has announced a £14bn (€16.4bn) cost saving over its £38.3bn of pooled assets it manages on behalf of its 11 Local Government Pension Scheme (LGPS) member funds.
Its member funds have now pooled 80% (£47bn) of their collective £60bn (at 31 March 2022), of which Border to Coast handles £38.3bn – an increase of £13.6bn in the year – and provides advice and support on a further £8.7bn pooled by its partner funds through passive index funds.
This demonstrates “the clear commitment to pooling and the added value it delivers”, Border to Coast stated.
Its fourth annual report and accounts today highlighted the continued development of investment opportunities to enable further pooling of LGPS assets.
It also continued to expand its private markets programme, with a further £4.1bn in commitments from partner funds, taking the total programme to approximately £10bn, marking Border to Coast’s progress as a significant institutional investor.
It said it continues to maximise the benefits of scale provided by pooling to explore new investment opportunities and drive improvements in ESG reporting, and it has secured a 24% reduction in fees across the asset class to date on behalf of partner funds.
Border to Coast said it remains on track to deliver £110m of cumulative net savings within the first 10 years of pooling and £250m in the first 15 years.
Embedding responsible investment
Border to Coast also continued to deliver on its commitment to responsible investment, setting out its approach to climate change during the year and pledging to achieve net zero carbon emissions by 2050 or sooner.
To support this goal, it launched a £1.35bn climate opportunities investment proposition within its private markets programme, targeting investment to drive the global transition to low-carbon economies.
Chris Hitchen, chair of Border to Coast, said: “We have come a long way in just four years and while the environment we will operate in will evolve, whether due to changing economic conditions, new government legislation, or implementation of sustainability goals, we will support our partner funds on the journey every step of the way.”
Rachel Elwell, chief executive officer at Border to Coast, said: “The collective scale achieved through pooling gives our partner funds an influential voice that has a real impact. Together, we have a stronger voice as a responsible investor and active steward of assets as well as within the investment industry itself.”