LGPS pool seeks expression of interest for sustainable equities offering

Brunel Pension Partnership is launching a call for expressions of interest for its sustainable equities offering. “This is an exciting opportunity to work with Brunel on an innovative, positive approach to pensions investment,” said Mark Mansley, Brunel’s chief investment officer. “The portfolio aims to generate excellent long-term financial returns by investing in companies that are able to clearly demonstrate that sustainability is at the core of what they do,” he added.

Faith Ward, chief responsible investment officer, said this sub-fund is fully aligned with Brunel’s investment principles, which offers its partner funds the opportunity to proactively allocate capital to sustainable solutions.

Brunel expects to spread the portfolio between three and five managers with diverse and complementary approaches. “We will be looking for a truly global approach to sustainable investing that embraces the vision of sustainable economic growth that supports a thriving environment and society,” Ward disclosed.

“We see this as an area of fast increasing popularity. As well as considering traditional sustainable equities, we will be keen to hear from managers with innovative approaches,” Mansley added.

Brunel’s sustainable equities sub-fund is a long-term focused investment approach which integrates environmental, social and governance (ESG) considerations throughout the whole investment process, decision making, stewardship, policies and strategies. It goes beyond risks, and seeks to maximise exposure to positive pursuit companies, targeting solutions to sustainability and benefiting society as a whole.

Mansley will favour managers with an internal ESG research capability, that take qualitative approaches, and can address ESG through positive screens. “We are interested in a global approach rather than those covering only certain regions.”

The portfolio size will initially be between £1 billion and £1.5 billion, but this figure may rise. The sub-fund value will be allocated between the selected managers and the strategy will be delivered through the ACS platform Brunel has developed in conjunction with FundRock. The formal launch is scheduled for Q2 2020.