A pair of UK pension funds have expanded their partnership with global investment giant BlackRock by backing the firm’s third Global Renewable Power fund.
The City and County of Swansea Pension Fund and North East Scotland Pension Fund said they made the investment in a bid to capture growth opportunities in renewables and invest in line with their long-term financial and sustainability goals.
GRP III invests in global renewable power assets to generate attractive risk adjusted returns with a low correlation to the economic cycle.
BlackRock said the fund’s profile is particularly attractive to UK Local Government Pension Schemes because it can help diversify their asset allocation while investing in more sustainable assets.
Close to 20% of the $1.5bn raised to-date has come from LGPS, representing $240m. Over A total of 40 institutional investors are invested in the fund.
Swansea and NESPF join three other LGPS who committed to the first close in late 2019.
Gavin Lewis, Head of UK LGPS at BlackRock, said, “From our work with LGPS clients, we know they are contending with how best to achieve strong and diversified returns.
“By electing to invest in a global portfolio of renewable power assets, which includes an attractive cash yield, Swansea and NESPF are better positioned to meet member benefit liabilities.
“Additionally, sustainability is increasingly at the forefront of clients’ minds, and the interplay between their asset allocation decisions and long-term sustainable goals can lead to better investment outcomes.”
GRP III is managed by BlackRock’s dedicated Renewable Power team, which manages $6bn in AUM for over 150 investors.
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