Brunel Pension Partnership, the pooled funds of several local authorities in Britain, has launched its first search for active equity managers by tendering for UK and global low volatility expertise.
It is looking to invest £1.2 billion (€1.37 billion) in UK equities and about £600 million in global low volatility and expects approximately two mandates to be awarded for both searches.
Mark Mansley, chief investment officer at the partnership, said: “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.”
He described low volatility as “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 environmental, social and governance considerations to help further reduce risk.”
Brunel is one of eight UK Local Government Pension Scheme pools. It manages investments for ten funds.
Brunel wants expression of interest by May 14.
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