Brunel Pension Partnership, the asset pool for the LGPS funds in south-west England, has awarded its first mandate, of more than £4 billion, to Legal & General Investment Management (LGIM), for passive equities.
The appointment of LGIM followed what Brunel described as a rigorous and diligent research and in-depty evaluation. Brunel chief investment officer, Mark Mansley, commented: “LGIM’s approach to enhancing performance and their commitment to enhancing performance and their commitment to corporate governance and stewardship, along with the client-focused ethos, has contributed to making them our preferred choice. We are confident that LGIM’s approach will be fully in line with our own low-cost, high-quality agenda.”
LGIM head of local authorities, James Sparshott, said: “We are delighted to be partnering with Brunel on their index-tracking equity portfolio. Our understanding of the specific challenges facing the local authority sector means we are able to use our scale and expertise to offer suitable low-cost investment solutions that meet our clients’ needs.”
Brunel is still in the process of making decisions on its passive smart beta equities mandate and a passive Gilts portfolio, with appointments to be announced in due course. Brunel has £29 billion awaiting allocation from 10 LGPS funds; Avon, Buckinghamshire, Cornwall, Devon, Dorset, Environment Agency, Gloucestershire, Oxfordshire, Somerset and Wiltshire.