On the go: Brunel Pension Partnership, composed of 10 Local Government Pension Scheme funds and with around £30bn in assets under management, will now offer PGIM Real Estate's UK Affordable Housing Fund to its clients.
Brunel Pension Partnership, composed of 10 Local Government Pension Scheme funds and with around £30bn in assets under management, will now offer PGIM Real Estate’s UK Affordable Housing Fund to its clients.
The Northern LGPS, which overseas £46bn on behalf of three UK LGPS funds, has also committed to the PGIM strategy. Brunel said it was “grateful for the leadership Northern has shown in the collaboration exercise”.
The open-ended UK Affordable Housing Fund invests in and develops affordable housing for working families in the UK, targeting net returns of 6 to 7 per cent. The fund currently includes portfolios in Sheffield, Hull, Reading, Southampton, Dunbar and Glasgow.
Vanessa Jacka, investment principal at Brunel, described the affordable housing fund as offering access to an “emerging but under-represented sector of the UK residential market”.
She said: “PGIM has a strong track record of raising standards in affordable rental, and it is an area where the LGPS can provide long-term support while achieving appropriate investment returns.”
Five of Brunel’s partner funds have so far invested. Matthew Trebilcock, head of pensions at the circa £2.3bn Gloucestershire Pension Fund, one Brunel’s partner funds, said he was pleased Brunel was providing “the chance to invest sustainably and responsibly in affordable housing”.
This article originally appeared on mandatewire.com
