UK LGPS Brunel picks manager trio for global small cap fund

On the 10/15/20 at 8:00AM


Adrien Paredes-Vanheule

Brunel Pension Partnership Limited, one of the United Kingdom eight pooled Local Government Pension Scheme funds (LGPS), has awarded a mandate of around £300m to three asset managers for the management of a global small cap fund.

The selected investment managers are Montanaro Asset Management, American Century and Kempen Capital. Before that, Brunel evaluated 33 different strategies as part of a two-stage selection process. Then 12 managers were invited to tender after which Brunel conducted due diligence on five of them.

The fund, run by Brunel's senior investment officer Stephanie Carter, targets investments in developed markets, as defined by inclusion in the MSCI World Small Cap index and seeks a 2-3% return net of fees. In addition, each of the mandates has “robust or developing ESG integration and engagement.”

“The Global Small Cap Fund gives our clients access to a range of investment approaches, with low correlation between our chosen managers,” said David Cox, head of Listed Markets at Brunel. “The manager allocations reflect how the fund is constructed to ensure a balancing of conviction, risk and liquidity considerations.”