LGPS pool ‘demonstrates major cost savings’, according to annual report
0Brunel Pension Partnership has achieved fee savings over the past three years of £33m, according to the pension pool’s annual report and financial statements for 2020-21.
Brunel is one of eight LGPS pools and has ten client funds: Avon, Buckinghamshire, Cornwall, Devon, Dorset, the Environment Agency, Gloucestershire, Oxfordshire, Somerset and Wiltshire.
Its annual report shows that, by December 2021, Brunel had transitioned more than £31bn of assets from the ten funds. This is around 80% of total client assets, and further transitions are expected over the year ahead.
Brunel is also making net fee savings of £13m a year (£24m gross) versus pre-pooling. Total investment management fees are 13 basis points cheaper than the market, according to third-party analysis.
“From this vantage point, pooling seems to be working,” said Denise Le Gal, Brunel’s chair.
The report also highlights the work Brunel is undertaking on responsible investment. This includes co-launching the Asset Owner Diversity Charter and launching a series of indices aligned with the Paris Agreement.
“In terms of fee savings, asset transitions, and trailblazing RI progress, financial 2020-21 was an exceptionally strong year,” said Joe Webster, Brunel’s chief operating officer.
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