Brunel Pension Partnership launches new sustainable equities fund

29 October 2020

Brunel Pension Partnership publishes on its website:

“Brunel Pension Partnership Limited (Brunel) is delighted to announce the successful launch of its Sustainable Equities Fund.

Brunel is one of eight pooled Local Government Pension Scheme funds in the UK, and the sub-fund will manage a mandate of approximately £1.2 billion.

Our clients asked Brunel to create a listed equity portfolio in which ESG considerations are at the forefront of the investment process, and where the managers positively pursue companies that will provide a benefit to society.

“The Sustainable Equities Fund gives our clients access to both the equity risk and sustainability focus they requested,” said David Cox, Head of Listed Markets at Brunel. “The three managers we appointed share a broad investing style and a prioritisation of sustainability, yet their approaches are also different enough to provide clients with the diversification they were looking for.”

Brunel received 70 expressions of interest, from which 15 managers were invited to tender. Brunel then shortlisted 8 managers for investment due diligence meetings, ultimately selecting three managers to form a blended solution.

We were delighted to find managers who share our understanding of sustainability, embedding it deep into their culture and investment processes. This portfolio therefore meets our aspiration to go beyond traditional Responsible Investing and ensure that the managers are engaged with the companies and are investing in them for positive reasons, not simply focusing on negative exclusions.

The portfolio opened with a significant underweight to GICS energy sector and an aggregate carbon intensity that is significantly lower than the MSCI All Country World Index, which it uses as a benchmark.

The selected managers integrate Environmental, Social, Governance (ESG) metrics throughout their whole investment process including their decision making, stewardship, policies and strategies. This portfolio goes beyond our current portfolios which manage ESG risks, and managers actively seek exposure to companies providing solutions to sustainability, whilst also targeting a financial return.

Sean Johns, Pensions Investment Manager, Cornwall Pension Fund, a client, says:

“The Cornwall Pension Fund aspires to be at the forefront of responsible investment best practice, and investing in companies and assets that contribute to the long-term sustainable success of the global economy and society is key to this. This cutting-edge product offers us a new way of meeting this aspiration.”

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