UK pension funds LPPI, Border to Coast and LGPS Central are soaking up assets from Brunel and ACCESS as the country takes the next step towards creating mega pools in Local Government Pension Schemes, which collectively manage £392 billion ($522 billion).
A new report published by the Border to Coast argues private equity fees and a lack of high-quality, UK-focused fund managers targeting the scale-up sector is impeding UK pension funds’ ability to invest in private equity.
Institutional investors strive to link their strategic asset allocation to their key objectives and ensure it evolves alongside technological advancements. A discussion at Fiduciary Investors Symposium Oxford explored the complexities and trade-offs inherent in portfolio construction.
Joe McDonnell, CIO of Border to Coast, says the £45 billion fund can help fill the gap in funding UK private companies wanting to IPO. It’s part of an investment strategy that sees a focus on putting capital to work innovatively and intentionally for its underlying funds.
An investment theme that incorporates all traditional businesses trying to exploit technology, including AI, is simply too broad. Focusing on AI alone leaves investors exposed to the uncertainty of future developments. In between is an approach that recognises AI as an accelerant to existing trends.
As Border to Coast approaches its 5th birthday chief executive Rachel Elwell reflects on the achievement of building a sustainable organisation, what investment capabilities are still to develop and the priorities for the underlying partner funds.
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