Brunel pool launches first fixed income portfolios

Brunel’s client funds asked the pool, which is composed of 10 local government pension schemes and with around £30bn in assets under management, to create a portfolio that invested in UK government debt to ensure that assets would not experience the traditional effects from rising inflation.

The passive index-linked gilts portfolio launched with around £1.1bn of assets from four client funds. It reached full funding in early June and tracks the FTSE Over 5 Year Index-Linked Gilts Index. 

Brunel engaged with its transition adviser, Inalytics, to select a transition manager to support the launch of the fund given the scale and operational complexity involved. 

“BlackRock was selected as transition manager in recognition of its deep experience in fixed income transition management, and its large project management team,” a statement from the pool read.

Brunel also launched an index-tracking gilts portfolio, which comprises conventional gilts and tracks the FTSE Over 15 Year Conventional Gilts Index.

The portfolio launched with around £70m in assets and reached full funding in early June. BlackRock was also the transition manager. 

David Cox, head of listed markets at Brunel, said: “These portfolios give our clients and their members access to the low-cost benefits of index-tracking investing.

“They also deliver clients the benefits of high liquidity, which can be important in managing pension cash flows effectively.”

This article originally appeared on MandateWire.com