Brunel launches emerging markets sub-fund

LGPS pool Brunel Pension Partnership Limited has appointed three investment managers to run a newly-launched emerging markets sub-fund.

Genesis Investment Management, Wellington Management and Investec Asset Management have been selected after the pool received more than 160 expressions of interest.

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The fund is has gone live with £1bn transferred from Brunel’s LGPS Clients and the pool said it expects the fund to grow to around £1.2bn by the end of the year.

David Cox, head of listed market investments at Brunel, said: “Our selection process focused on managers who have clear approach they stick to and who were able to demonstrate a high level of skill across the broad emerging markets.

“We also sought managers with diverse approaches, which minimises the likelihood they’ll underperform at the same time,” says David.

The pool said that Genesis uses a diversified approach with a long-term investment horizon.

Wellington uses a research-driven process with assets allocated to sub-portfolios by industry, “attempting to outperform by exploiting intra-industry inefficiencies”.

Investec uses a “four-factor screen” which identifies high quality, attractively valued companies with improving operating performance, the pool said.

Cox added that all the managers had been asked to demonstrate environmental, social and governance considerations throughout their investment processes.

“As with all our portfolios, it’s important that we’re investing for a world worth living in,” Cox said.

Brunel brings together circa £30bn for the pension funds of Avon, Buckinghamshire, Cornwall, Devon, Dorset, Environment Agency, Gloucestershire, Oxfordshire, Somerset and Wiltshire.

In September, Brunel invited fund managers to pitch for work in its small cap sub-fund.

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