The Scottish Borders Council pension fund has confirmed it is committing £130m (€150m) to a new UK social investment fund launched by M&G.
According to the pension fund, the commitment positions the council as one of the first investors in the M&G UK Social Investment Fund.
M&G has said the fund will focus on delivering positive social outcomes through urban regeneration, affordable homes, clean energy and essential infrastructure that improve health and community wellbeing.
“We are delighted to be investing in M&G’s new UK Social Investment Fund, which represents a major opportunity to channel long-term capital into projects that genuinely improve lives,” said David Parker, chair of the pension fund committee.
“This commitment will help drive economic growth and support communities right across the country, with high-quality initiatives that deliver real and lasting impact.”
The pension fund said the financing in the fund will bring institutional capital into projects across the country, including opportunities to work with local authorities and housing providers on purpose-built accommodation for young care leavers and the delivery of additional affordable homes.
The council’s pension fund’s investment is made alongside M&G’s own With Profits Fund and aims to attract further investment from other pension schemes and institutional investors.
The fund will be managed by M&G’s private markets business and is aligned with the UK government’s policy objectives to encourage local government pension scheme (LGPS) funds to support long-term UK economic growth.
M&G is aiming to attract further investment from LGPS and international investors, alongside other long-term investors, including defined contribution pension schemes, endowments and charitable foundations.
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