Brunel launches first fixed income portfolios with index-tracking gilts exposure

Alex Monro
Head of Communications
17th June 2021

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Brunel Pension Partnership Limited (Brunel) is delighted to announce the successful launch of its Passive Gilts and Passive Index-Linked Gilts (ILGs) portfolios, in partnership with BlackRock.

“These portfolios give our clients and their members access to the low-cost benefits of index-tracking investing,” said David Cox, Head of Listed Markets at Brunel. “They also deliver clients the benefits of high liquidity, which can be important in managing pension cashflows effectively.”

Passive index-linked gilts

Our clients asked Brunel to create a portfolio invested in UK government debt that ensured assets would not experience traditional effects from rising inflation. Four of our ten clients are invested in the BlackRock Aquila Life pooled fund at launch.

Brunel engaged with Inalytics, our transition advisor, to select a transition manager, given the scale and operational complexity involved. BlackRock was selected as transition manager in recognition of its deep experience in fixed income transition management, and its large project management team.

Total transitions at launch were c£1.1 billion across the four clients. The Index-Linked Gilts investment reached full funding in early June and will track the FTSE Over 5 Year Index-Linked Gilt Index.

Passive gilts

Brunel has launched a further index-tracking gilts portfolio investing in conventional gilts. As for the ILG fund, BlackRock was appointed transition manager on the Index-Tracking Gilts portfolio.

Total transitions were c.£70 million. The index-tracking gilts investment reached full funding in early June and will track the FTSE Over 15 Year Conventional Gilt.

Portfolios partnership

We are delighted to be extending our existing relationship with Brunel in helping their clients solve investment challenges such as concerns over rising inflation.  Through our platform, we have provided Brunel and its clients with exposure to gilt index-tracking strategies that leverage our state-of-the-art technology platform, global trading footprint and proven track record in efficiently managing index fixed income portfolios.
Gavin Lewis, Managing Director, Head of LGPS BlackRock


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