Brunel Pension Partnership has handed a passive equity mandate to Legal & General Investment Management (LGIM).
The decision will see LGIM manage a £4bn passive equity portfolio on behalf of Brunel’s 600,000 members.
Brunel Pension Partnership chief investment officer Mark Mansley said: “LGIM’s approach to enhancing performance and their commitment to corporate governance and stewardship, along with their client-focused ethos, has contributed to making them our preferred choice.”
LGIM head of local authorities James Sparshott added: “Our understanding of the specific challenges facing the local authority sector means we are able to use our scale and expertise to offer suitable low-cost investment solutions that meet our clients’ needs.”
Brunel, which currently has £29bn in assets, said it expects further decisions regarding passive smart beta equities and passive gilt portfolios to be made in due course.
It has also put a £1.8bn mandate out for tender for active UK equity and global low volatility strategies earlier this week.
As one of eight national pooled funds, it manages the pension assets for the schemes of Avon, Buckinghamshire, Cornwall, Devon, Dorset, the Environment Agency, Gloucestershire, Oxfordshire, Somerset and Wiltshire Funds.
LGIM expanded its ETF offering last month with the acquisition of European ETF platform Canvas, which was previously owned by ETF Securities.
