On the go: The circa £24.7bn Border to Coast Pensions Partnership is on track to deliver more than £110m of cumulative net savings within its first decade of pooling and more than £250m in the first 15 years, according to its annual report.
As an example of some savings it has achieved, the pool — which handles the assets of 11 Local Government Pension Scheme funds worth around £55bn — cited a July 2020 transaction in which it completed its first crossing deal on behalf of two partner funds in its UK-listed equity fund.
BCPP managed the transaction of one partner redeeming assets from the fund and another partner investing into the fund at the same time.
This crossing deal reduced the cost of cash redemptions and subscriptions for both parties, resulting in £3.5m of cost savings. The pension pool has since completed a further five crossing deals.
With the build costs of a regulated entity completed, the annual cost savings are expected to significantly increase in the years to come, it stated.
Chris Hitchen, BCPP chair, said: “We were created to make a difference and we are already delivering for and on behalf of our partner funds.
“While we are only three years into our initial five-year strategic plan, given the challenges of setting up a Financial Conduct Authority-regulated asset manager and managing through Covid-19, what we have achieved together with our partner funds is truly impressive.”
This article originally appeared on MandateWire.com
