Alternative Investments/ESG: Brunel Allots £1.2B ($1.55B) Sustainable Mandate To Three Managers

The Brunel Pension Partnership Limited (Brunel) launched a new Sustainable Equities Fund for local authorities’ pension funds.

The Brunel Pension Partnership has picked Ownership Capital, RBC Global Asset Management, and Nordea Asset Management to manage its new Sustainable Equities Fund of around £1.2 billion ($1.55 billion).

Brunel is one of eight pool Local Government Pension Scheme funds in the U.K.

The sub-fund mandate is on behalf of 10 local government pension scheme funds. They wanted a listed equity portfolio with a pronounced skew in favor of ESG considerations. The emphasis would be on companies with positive ESG performance rather than negative exclusions. (Institutional Asset Manager)

Multi-manager sustainable fund

Brunel shortlisted the three managers from 70 expressions of interest.

“The three managers we appointed share a broad investing style and a prioritization of sustainability, yet their approaches are also different enough to provide clients with the diversification they were looking for,” said David Cox, Head of Listed Markets at Brunel.

“We were delighted to find managers who share our understanding of sustainability, embedding it deep into their culture and investment processes,” says David Jenkins, Portfolio Manager for the Sustainable Equities Fund. “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.”

Investment thesis

The portfolio is significantly underweight to the GICS energy sector. It also features an aggregate carbon intensity that is significantly lower than its benchmark, the MSCI All Country World Index.

The selected managers will integrate ESG considerations into their whole investing process. Their focus will not be to manage ESG risks – rather to positively seek out exposure to companies on a sustainable path.

In the process, they would also generate a suitable financial return.

Related Story:  Insurers Take a Fancy To ESG & Sustainability ETFs (Invesco)

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Digital Assets: HAIC I, The New Crypto Fund From A German Private Bank Targets Institutions
December 4, 2020     Digital Assets, News

German private bank Hauck & Aufhäuser Privatbankiers AG will soon provide investors the opportunity to obtain long-term exposure to leading, large-cap cryptocurrencies such as bitcoin, ether, and stellar. The bank’s…
FinTech: Stripe’s New ‘Treasury’ Product Offers Bank Accounts To Its Platform Partners
December 4, 2020     FinTech, News

Stripe launches Stripe Treasury in major expansion of financial services offering for platform partners
Alternative Investments/ESG: Fidelity Launches ETF Focused On Sustainable Emerging Market Companies

Joyce Chang, chair of global research at JPMorgan, told CNBC’s “Street Signs Asia” on Thursday that stocks in emerging markets “were very under-owned” considering the overall rally in the equity…
Venture Capital: Space Perspective Scores $7M For Its Sub-Orbital Balloon Junkets
December 4, 2020     Latest News, News, Venture Capital

Space Perspective is a startup planning to offer high-altitude (read: “edge of space”) trips in Spaceship Neptune, a pressurized capsule suspended from a balloon. It announced Wednesday its raise of…