On the go: The £38.3bn Border to Coast Pensions Partnership, which handles the assets of 11 Local Government Pension Scheme funds worth a collective £60bn, has announced it is delivering on its promise to cut costs for its local authority pension partner funds.
“One of the objectives of pooling was to deliver cost savings for our partner funds,” its latest annual report stated.
The report noted that BCPP has achieved a net £14mn of savings during the year to March 31 2022. The pool remains on track to deliver more than £110mn of cumulative net savings to its partner funds within the first decade of pooling and more than £250mn in the first 15 years.
As at March 31 2022, £47bn of the local authority partner funds’ circa £60bn of assets have been pooled.
The report highlighted an estimated 24 per cent reduction in fees within its private markets offering, having launched the first private programme in 2019 and having received £4bn of commitments for its second private markets programme, which included a climate opportunities offering.
“By leveraging our collective scale as a pool, we have secured improved access to a range of high-quality managers in the private market space, as well as co-investment opportunities, in a cost-effective and efficient way,” the BCPP report stated.
“Our size means we have a stronger voice to engage with managers as a responsible investor, supporting the drive to improve ESG disclosures in private markets.”
The report also included a host of BCPP’s activities during the year, including the launches of its £3.5bn Multi-Asset Credit Fund in November 2021 and its £1.4bn Listed Alternatives Fund in March 2022.
It also confirmed the pension pool’s commitment to hit net zero by 2050 or sooner. Later this year, BCPP is expected to publish the roadmap to achieving its net zero ambitions.
This article originally appeared on MandateWire.com
