Brunel Pension Partnership seeks managers for £1.5bn Multi-Asset Credit fund

Daniel Spencer
Portfolio Manager - Listed Markets
23.07.2020
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PRESS RELEASE, 23 July, 2020

FOR IMMEDIATE RELEASE

Brunel Pension Partnership Limited (Brunel) has launched a search for managers for its £1.5 billion Multi-Asset Credit sub-fund.

The portfolio will invest in a variety of specialist bond sectors, such as high yield corporate bonds, bank loans, asset-backed securities and emerging market debt. The intention is to gain exposure to range of more specialised, higher-yielding bond sectors which collectively provide a diversifying, moderately high-return portfolio. Brunel expects to spread the portfolio between managers with diverse and complementary approaches. We look forward to seeing how managers align their submissions with Brunel’s Climate Change Policy.

The deadline for receipt of expressions of interest is 11am GMT on Tuesday 01 September 2020. Prospective managers should contact Brunel at MAC@brunelpp.org for further information and a submission template.

“Multi-Asset Credit provides an exciting opportunity for our clients to gain access to sub-investment grade credit in a diversified and understandable manner, with strong ESG integration” says Daniel Spencer, Senior Investment Officer at Brunel. “The portfolio will be highly differentiated from our other portfolio offerings, providing our clients with an opportunity to reduce risk whilst maintaining reasonable levels of expected return through use of diversified credit.”


Investment structure and aims

The Multi-Asset Credit portfolio aims to gain exposure to a diversified portfolio of enhanced credit opportunities with modest-to-low exposure to interest rate risk. The performance objective is to outperform SONIA (Sterling Overnight Index Average) by +4-5% over a rolling 3-5-year period. Selective exposure to investment grade corporate bonds will be permitted.

The Multi-Asset Credit portfolio size will be approximately £1.5bn, to be allocated between the selected managers. The sub-fund will be delivered through the ACS platform Brunel has developed in conjunction with FundRock. The formal launch is scheduled for Q1 2021.

Brunel is being assisted throughout the process by consultants from Mercer.

Fund managers invited to get in touch

Fund managers who haven’t yet submitted details should email MAC@brunelpp.org. They will then receive the briefing document on the call for expressions of interest and a submission template. The email should have a subject of ‘MAC EOI Documentation Request’. If an acknowledgement is not received within 48-hours, please phone us on 07458 144663.

Notes to editors

For more information or high-resolution images, please email to press@brunelpp.org

About Brunel Pension Partnership Limited

Brunel Pension Partnership Limited (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 manages 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.org

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