LGPS Central, the asset manager pool for nine Midlands-based local authority pension funds with a total of £44 billion in assets, has announced its latest manager selections, with five managers appointed for equity mandates and two fixed income managers.
The five equity managers have been appointed to global sustainable equity mandates, where sustainability is a core part of the alpha generation process. The managers are AGF Management, Baillie Gifford, Impax Asset Management, RBC Global Asset Management and WHEB Asset Management. The overall mandate size is £1 billion. LGPS director of responsible investment and engagement, Michael Marshall, commented: “This is the largest allocation to actively managed sustainable equities ever made in the UK. This shows tremendous leadership by our partner funds, who continue to demonstrate that responsible investment is truly integrated into their investment strategies. We look forward to working with the outstanding investment managers who have been selected for the mandate.” West Midlands Pension Fund councillor, Ian Brookfield, commented: “We have a long history of engaging companies to protect and enhance fund assets; now we will actively target those who are alert to the changes on the horizon and align with our requirement for long term sustainable returns.”
LGPS Central has also selected two managers, Fidelity and Neuberger Berman, for its global investment grade corporate bond fund. LGPS Central investment director for fixed income, Gordon Ross, commented: “We chose these firms because of their global reach as well as their strong presence in the UK. It’s clear they follow robust processes that are repeatable across all credit markets.”