Brunel Pension Partnership launches initial Active Equities searches

Brunel Pension Partnership has launched its first search for active equity managers today. We are seeking managers for UK equities and global low volatility equity mandates.

Although exact amounts are subject to client demand, the UK Equity search is for around £1200m, and Low Volatility for around £600m.

The search will be a two-stage process. The first stage involves submitting an expression of interest to Brunel by 14 May. These submissions will be evaluated, and a shortlist invited to a full tender. We will select the final managers based on their tender responses. The number of managers and allocation between them will be at the discretion of Brunel, but for both searches we expect approximately two mandates to be awarded.

To receive the briefing document on the call for expressions of interest and a submission template, interested managers should send an email with key organisational details to investments.brunel@brunelpp.org. The email should have a subject of either ‘Brunel UK Equity’, ‘Brunel Low Vol’ or ‘Brunel UK Equity and Low Vol’. If you don’t receive a response within 24 hours, please phone us on 07458 144643.

Mark Mansley, Chief Investment Officer at Brunel Pension Partnership, says: “We are pleased to be in a position to open the search for managers with regards to these two asset portfolios. UK Equities is still an important allocation for many investors and we look forward to hearing from managers how they manage diversification in this relatively concentrated market, and, importantly, their approach to stewardship.

“Low Volatility is one of the most intriguing areas of the smart beta revolution and a good fit for investors seeking to reduce equity risk. We are particularly interested in hearing from managers able to address risk of valuation bubbles in low volatility strategies, and able to use ESG considerations to help further reduce risk.

“Finally, as always, we are interested in hearing from investment managers with a clear, consistent process, willing to be open about their culture and human capital management, and committed to transparency. Clarity and brevity in tender documents will also be a benefit.”

Brunel Pension Partnership may engage consultant support on aspects to the process, but it will be fully managed by Brunel.