Brunel points to achievements after being singled out by government
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Brunel Pension Partnership has said it will “seek the best outcomes for our partner funds and their members” and has been gathering support statements, after the government decided it should not continue as an independent asset pool for the Local Government Pension Scheme.
Chief executive Laura Chappell said the pool “is working with our partner funds to consider options for the next stage in our evolution”.
She stressed the £35bn pool’s strengths, from nearly 90% client transitions to cost efficiencies, asset class range and responsible investment.
“We believe these place us in a strong position to find a solution that continues to benefit our partner funds and their members,” she said. “Our partnership is highly respected among LGPS pools and throughout the pensions sector, while our leadership on responsible investment gives us clout across the broader financial industry.”
Among others, the pool points to:
- Cost savings of £46m per year by 2023-24
- Provision of portfolios across multiple asset classes, including five private markets asset classes
- 32% of all pooled AUM invested in the UK
- More than 30% of pooled and non-pooled client assets in private markets, of which more than £4.3bn in the UK
Chappell said: “In short, we did not simply meet the initial aims of pooling: we exceeded those aims and blazed a trail in responsible investment across the global asset owner space. For these reasons, we strongly reject any suggestion that weaknesses as a pool explain the government’s recent invitation to Brunel’s partner funds to seek an alternative pooling arrangement.”
However, the pool will be led by its partner funds, she said. In addition, “we will continue to seek engagement with [the Ministry of Housing, Communities and Local Government] and the Treasury as we plan for our next steps. Our priority remains unchanged: to seek the best outcomes for our partner funds and their members.”
Mark Gayler, client group chair at Brunel, said: “We know that our success has come from the strength of working together in partnership. We are exploring options to harness that strength for the future, so that our impact and influence can continue.”
Brunel is one of two asset pools whose pension funds were told to look elsewhere by the government, ahead of its response to the ‘Fit for the future’ consultation, which has led Phil Triggs, tri-borough director of treasury and pensions at Westminster City Council, to write in the Local Government Chronicle that the government might have shown little regard for the feedback received.
The other pool, Access, said last month that “all options are being explored” after it was told that it did not meet the government’s criteria to continue as a pool.
