Public Markets


The Public Markets team is responsible for investing in equities and fixed income both directly and through overseeing external managers. We are primarily responsible for managing the assets of the Growth Fund, as well as other pooled funds which invest in Public Market assets.

We invest ourselves when we know that we will always have a need for an asset class and where we are confident that we have the necessary expertise – like equities. Where we may want to invest for a while, but not forever, or where there is a high research burden, we will outsource to external managers – like high-yield bonds.

The Public Markets team is split into three sub-teams. Please see below for more information on each team.


Fixed Income & Trading

The team is responsible for all portfolio management and implementation activity.

The team manages our internal government bond pooled funds, as well as providing oversight to externally managed fixed-income portfolios.

They also manage our relationships with third-party implementation providers across asset classes.

Fundamental Equity

The team is primarily responsible for managing our fundamental equity portfolios. These are concentrated, high-conviction portfolios focussed on companies with high barriers to entry and sustainable competitive advantages.

The team also assist colleagues in assessing investment opportunities.

Quantitative Equity

The team manages Railpen’s  alternative risk premia equity portfolios using a number of proprietary factor signals.

They are also responsible for overseeing any equity portfolios managed externally.


As one of the first UK investors to focus on alternative risk premia (ARP) we have strong expertise and analytical capabilities in this area.

The ARP team manages single-premia portfolios and a multi-factor portfolio driven by the following factors.

Low Volatility


We look for innovative investment opportunities, and work closely with colleagues in Private Markets to source,
conduct due diligence on and monitor investments that provide diversification to the Growth Fund.

In 2017 we invested in royalty streams in the music and healthcare industries.
These royalty streams provide just the type of secure long-term returns that we are looking for.

Example 1 - Music Royalties

In November 2017 Railpen led a funding round to raise $345 million for Kobalt Capital’s music royalties fund which invests in music copyright. The fund provides income based on the collection of royalties when music is broadcast, performed or streamed online.


Example 2 - Healthcare Royalties

In 2017 we invested with HealthCare Royalty Partners in a portfolio of medicinal drugs. Our royalties portfolio includes drugs that help patients with nerve problems manage their pain. Our initial investment acquired a portfolio of c.10 royalty streams. Each of these generate returns over the lifetime of the drug.