Border to Coast Pensions Partnership, Leeds, England, hired Goldman Sachs Asset Management and Baillie Gifford to manage two thirds of a £700 million ($844 million) ex-China emerging markets equity allocation.
UBS and FountainCap already manage a dedicated China equity sleeve, which constitutes the rest of the emerging markets allocation.
Border to Coast said Monday that environmental, social and governance and climate-change considerations, and a manager's approach to active engagement were a fundamental part of its manager selection process.
"Our selected managers have an extensive presence in emerging markets, and we believe this specialization — amplified by how we have structured the fund — strengthens our partner funds' access to investment opportunities that deliver sustainable, long-term risk-adjusted returns," said Graham Long, head of external management at Border to Coast, in a news release Monday.
"Each has a strong understanding of the ESG considerations in these markets and will ensure we can continue to proactively engage with portfolio holdings as an active steward of LGPS assets," Mr. Long added.
Member funds of the local government pension scheme pool have a combined £60 billion in assets.
A spokeswoman at the pool could not be immediately reached.