Brunel launches pioneering Asset Management Accord

PRESS RELEASE, 29 November 2018

FOR IMMEDIATE RELEASE

Brunel Pension Partnership launches pioneering Asset Management Accord

Brunel Pension Partnership (Brunel) has created its Asset Management Accord, a document designed to facilitate long-term relationships between the investment pool and its appointed managers.

“The aim of the Accord is to capture not only our expectations of managers, but also the spirit of what they can expect from us,” says Mark Mansley, Chief Investment Officer at Brunel. “The idea is that by putting this document together, we can address managers’ key concerns and help managers to understand what matters to us. It’s a proactive approach intended to equip managers to work with us more collaboratively and focus our dialogue with managers on the really important issues.”

Devised with Brunel’s Chief Responsible Investment Officer Faith Ward and building on Mansley and Ward’s experiences at the Environment Agency Pension Fund, the Accord is intended as an opportunity for clarity and openness on both sides, with the aim of making manager relationships with Brunel far more of a team effort and true partnership.

“We hope that by spelling out our expectations, asset managers will feel safer and do better,” Faith says. “We believe that this documented approach is ground-breaking within the investment industry but hope that others will follow our lead. In the long term, more co-operative and transparent relationships will have better results for us all.”

Examples of the Accord’s contents include:

From the section ‘Being long term’:

• The Manager is expected to be familiar with Brunel’s 12 Investment Principles, which include a strong emphasis on long-term value creation and stewardship, and other related strategic statements which Brunel may issue from time to time.

From the section ‘Communication is vital’:

• Both parties acknowledge the importance of open and free communication between themselves. Although communication may be frequent, both parties do not wish this to lead to short term pressure and Brunel will endeavour to ensure that such dialogue does not inadvertently give such an impression. If the Manager feels under short term pressure, they should provide feedback to Brunel on these concerns.

From the section ‘Thought leadership and innovation’:

• Brunel are prepared to be innovative and demonstrate thought leadership in collective investment, within the requirement of prudence and joint fiduciary duty. Brunel welcomes open dialogue to explore ways to meet both its own and our clients’ evolving investment needs.  The Manager will keep Brunel informed of the evolution of its business and its investment process so that Brunel can ensure the mandate remains fit for purpose.

About Brunel Pension Partnership Limited

Brunel Pension Partnership Limited (Brunel) brings together circa £30 billion investments of 10 likeminded Local Government Pension Scheme funds. We believe in making long-term sustainable investments supported by robust and transparent process. We are here to protect the interests of our clients and their members. In collaboration with all our stakeholders we are forging better futures by investing for a world worth living in.

Brunel is one of eight national pooled funds and will manage the investment of the pension assets for the funds of Avon, Buckinghamshire, Cornwall, Devon, Dorset, Environment Agency, Gloucestershire, Oxfordshire, Somerset and Wiltshire. Find out more at www.brunelpensionpartnership.org

Discover the motivation behind Brunel’s Asset Management Accord.

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For more information or high-resolution images, please contact Judy Darley, Communications Manager, press@brunelpp.org