Brunel introduces its Authorised Contractual Scheme

Millennium Bridge, London. Photo by James Padolsey on Unsplash

PRESS RELEASE, 11 December 2018


Brunel Pension Partnership (Brunel) has successfully launched its Authorised Contractual Scheme (ACS), with its first sub-fund, for actively managed UK Equities. The Active UK Equity portfolio is worth c. £1.6 billion.

 “We have appointed Invesco, Baillie Gifford and Aberdeen Standard Investments (ASI) to manage this sub-fund, within our ACS operated by FundRock,” says Mark Mansley, Chief Investment Officer at Brunel. “Our rigorous quantitative investment analysis revealed that these managers present the blend of complementary skills and methods that will best serve this sub-fund. Invesco is a systematic manager with excellent risk controls. Baillie Gifford and ASI are more conventional active managers able to add value over the medium to long-term, each through their own individual approach to stock selection.”

He adds: “We have carefully reviewed the correlation between the managers to ensure they provide genuine diversification, and believe this combination is particularly efficient. We expect the portfolio to meet our 2% outperformance target with modest overall risk and low costs. The managers’ approaches to stewardship and responsible investment were also key. “

FundRock is responsible for meeting regulatory requirements and risk management within the ACS, with Brunel responsible for overall investment management, which Brunel is then delegating to the selected managers. Read more about the appointment of FundRock.

Since the appointment, Brunel and FundRock have been working closely together to obtain FCA authorisation for the ACS and establish the operating framework. “Our teamwork in creating the ACS has demonstrated for us that FundRock were the right choice and are partners we can truly collaborate with,” says Mark. “This is a major milestone for Brunel and our client funds.”

Dean Heaney, InvescoDean Heaney, Head of UK Government & Strategic Institutions at Invesco, says: “We are delighted that Brunel have appointed Invesco to manage part of their UK equity portfolio. Our active multi-factor investment approach aims to deliver client outcomes that go beyond the limitations of traditional benchmark-centric active management. We look forward to building a long-term partnership with Brunel, its partner funds and their stakeholders.”

Piers Lowson, Baillie Gifford & CoPiers Lowson, Director of the Clients Department at Baillie Gifford & Co, says: “Baillie Gifford is delighted to have the opportunity to work with the Brunel Pension Partnership as co-manager of their UK Equity sub-fund. Our appointment underlines our organisations’ shared aims of generating value through responsible, long term investment management. We have worked successfully with Brunel’s clients for more than a decade and look forward to continuing this productive relationship. “

Euan_Baird, Aberdeen Standard Investments_crop

Euan Baird, Aberdeen Standard Investments

Euan Baird, Client Director at Aberdeen Investments, comments: “Brunel’s commitment to making long-term sustainable investments perfectly aligns with our own objectives. Our strength in UK equities has always been our style agnostic focus on company research. As a global investment house, we also take our responsibilities as an investor seriously with environmental, social and governance considerations embedded in our investment process and fully integrated in investment decision making. As a partner of choice, we look forward to building a collaborative relationship with Brunel that focuses on delivering for their underlying clients.”

The ACS launched on 19 November. Brunel were supported throughout the Active UK Equity sub-fund searches by Redington Investment Consultancy, with detailed manager analytics provided by Inalytics for UK equities.

We expect all the managers we appoint to sign up to the LGPS Code of Transparency or equivalent and are pleased that the managers appointed regarding these mandates are signatories of the Code.

About Brunel Pension Partnership

Brunel Pension Partnership (Brunel) brings together circa £30 billion investments of 10 likeminded Local Government Pension Scheme funds. We believe in making long-term sustainable investments supported by robust and transparent process. We are here to protect the interests of our clients and their members. In collaboration with all our stakeholders we are forging better futures by investing for a world worth living in.

Brunel is one of eight national pooled funds and will manage the investment of the pension assets for the funds of Avon, Buckinghamshire, Cornwall, Devon, Dorset, Environment Agency, Gloucestershire, Oxfordshire, Somerset and Wiltshire. Find out more at www.brunelpensionpartnership.orgInvesco logo small


About Invesco Ltd

Invesco is an independent global investment management firm dedicated to delivering an investment experience that helps people get more out of life. Invesco’s association with Local Government Pension Schemes goes back 20 years, providing focused investment strategies and initiatives that recognise the specific needs of this sector.

About Baillie GiffordBaillieGifford_Black_LOGO_RGB

Baillie Gifford are long-term, fundamentally driven, active investors managing equity, fixed income and multi asset portfolios for their clients which include over half of the world’s largest twenty pension funds. Currently they manage assets on behalf of over 40 LGPS administering authorities as well as Public Fund assets from North America, Australia, Asia and elsewhere. They have a strong history of adding value to clients’ portfolios above benchmark and after fees.

About Aberdeen Standard Investments Aberdeen Standard Investments Logo

Aberdeen Standard Investments is a leading global asset manager dedicated to creating long-term value for clients. With over 1,000 investment professionals, they manage £557 billion* of assets worldwide as at 30 June 2018. They have clients in 80 countries supported by 50 relationship offices. This ensures they are close to their clients and the markets in which they invest. They are high-conviction, long-term investors who believe teamwork and collaboration are the key to delivering repeatable, superior investment performance.

About FundRockFundRock logo

FundRock is a leading independent third party UCITS Management Company, Alternative Investment Fund Manager, Authorised Corporate Director and Authorised Contractual Scheme Operator, providing services to funds domiciled in the UK, Ireland and Luxembourg.

FundRock provides substance through solid Risk management, Oversight and Compliance functions supplemented by years of acquired Knowledge delivered by a multinational team of around 100 industry professionals.

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