On the go: The Brunel Pension Partnership has published its annual report highlighting the cost saving incurred and the increased opportunities for stewardship, diversification and climate analysis for its members.
The pool, composed of 10 Local Government Pension Scheme funds and with around £30bn in assets under management, transitioned around £20bn from its member funds in the year to September 30 2020, while placing great emphasis on environmental, social and governance concerns.
It expects to complete most of the remaining transitions of assets from its members in 2021.
“Pooling has created annual savings of more than £34m and increased opportunities for stewardship, diversification and climate analysis,” the document read.
Laura Chappell, Brunel’s chief executive, explained that the pool had achieved significant tax and cost savings in its reporting year.
“Tax savings are made by ensuring that there is appropriate look through to our LGPS investors,” she said, while singling out that the pool’s Property Fund has saved several million pounds to date, versus pre-pooling.
“Our progress has been helped by a new engagement with Caceis, our cost transparency partner, announced in April 2020,” Chappell added.
The pool received first client transfers of legacy property portfolios in 2019. In 2020, it successfully transitioned £1bn of property assets, the annual report stated.
Brunel published its climate change policy in January 2020 and a carbon metrics report later in the year, the latter of the two showed that, as of December 31 2019, the Brunel Aggregate Portfolio was less carbon-intensive than its custom benchmark, with a relative efficiency of 15.4 per cent.
It also found that the Brunel Aggregate Portfolio has lower exposure to both fossil fuel revenues (9.4 per cent versus 12.4 per cent) and disclosed reserves (5.2 per cent versus 7.4 per cent).
“Now more than ever, a long-term, responsible and sustainable approach to investing is crucial. The pandemic has underscored the importance of ESG for all, as any failure in the management of these systemic risks became more apparent by the day throughout 2020,” the report read.
“Our marked focus on sustainability has stood our portfolios in good stead through the Covid-19 crisis. As asset owners with a strong mandate in this area from our clients, we will continue to look to the long term in our investment philosophy, building portfolios for partner funds with a strong focus on ESG factors,” it continued.
This article originally appeared on Mandatewire.com
