LGPS fund to develop ESG reporting with custodian

Pension_protectionState Street has won a custody and fund administration mandate in the UK’s Local Government Pension Scheme (LGPS), where large asset pools are being created.

The Brunel Pension Partnership, which pools assets from several pension schemes, has awarded State Street an asset-servicing mandate equivalent to $38 billion (€43 billion).

State Street will also carry out accounting, performance measurement and foreign exchange, as well as data, risk and environmental, social, and governance (ESG) analytics.

Dawn Turner, CEO at Brunel, said: “We are delighted after a highly competitive and robust procurement to appoint State Street, and we have already established areas where we can work strategically together to increase our value add to our clients including client reporting, risk management and transparency.”

She added: “The partnership we will have on integrating ESG reporting into State Street systems is very exciting.”

Andy Todd, head of UK pensions and banks at State Street, said State Street would combine Brunel’s “market-leading” ESG expertise with the bank’s own suite of data technologies to embed ESG in the investment decision-making process.

The Brunel Pension Partnership is a £28 billion (€32 billion) investment company created in July this year and pools assets for local authority schemes run by councils in Avon, Buckinghamshire. Cornwall, Devon, Dorset, Gloucestershire, Oxfordshire, Somerset, and Wiltshire, as well as the Environment Agency.

Brunel is one of eight national pooled funds created since pooling requirements were introduced to the LGPS sector.

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