Brunel Pension Partnership (Brunel), one of the UK’s eight Local Government Pension Scheme (LGPS) pools, has allocated USD1 billion (GBP798 million) to Fiera Capital’s Global Equities Strategy, following a thorough process designed to identify the best Global High Alpha managers.
Brunel, which manages circa GBP30 billion on behalf of the local government pension funds of Avon, Buckinghamshire, Cornwall, Devon, Dorset, Gloucestershire, Oxfordshire, Somerset, and Wiltshire as well as the Environment Agency pension fund, was looking for a long-term approach, innovation and originality in managers’ processes, and high return expectations of 3 per cent or more over benchmark.
Fiera Capital’s Global Equities Strategy has generated an annualised return of 14.19 per cent since inception in October 2009, an outperformance of 5.18 per cent over the MSCI World benchmark (gross return in USD). This segregated mandate will be managed by Senior Portfolio Manager Nadim Rizk, MBA, CFA and a team of one portfolio manager and seven analysts.
The strategy aims to achieve superior and sustainable results by investing in a concentrated yet diversified portfolio of high quality companies and holding them for the very long run. As a result of unique competitive advantages, these companies are able to generate stable and strong return on invested capital (ROIC), provide ample long-term growth potential at incrementally higher ROIC, generate strong and predictable free cash flow, consistently compound shareholder wealth over the long term and preserve capital.
Matt Betts, Senior Investment Officer, Brunel Pension Partnership Limited, says: “We’re delighted to appoint the Fiera Capital Global Equity Team to our Global High Alpha portfolio. We were impressed by their disciplined process and their impressive in-depth knowledge of the companies they invest in. Responsible investment is key to Brunel’s decision-making, and Fiera demonstrated the ability to integrate environmental, social and governance considerations in a robust way, with a particular focus on governance quality, which resonates with our approach.”
Nadim Rizk, Lead Portfolio Manager and Head of Global Equities, Fiera Capital, says: “We are very pleased to take on Brunel Pension Partnership as investors in our Global Equity Strategy. Their patient approach to long-term investing and focus on quality closely aligns with our process and philosophy.”
Varda Lotan, Senior Vice-President and Head of European Distribution, Fiera Capital, says: “We are delighted to bring on a new partner within the LGPS community as one of our valued investors. The addition of Brunel Pension Partnership’s Global Equity mandate reinforces Fiera Capital’s commitment to expanding its global presence by helping UK Government Pension Schemes achieve their investment objectives.”
Recently, another LGPS, the London Borough of Newham Pension Fund doubled its commitment to Fiera Capital’s Global Agriculture Fund. This follows a commitment to the Fiera Capital Global Mid Market Infrastructure Fund in 2018.
Overall, Fiera Capital now manages three strategies on behalf of UK Local Government Pension Schemes in both traditional and non-traditional investments.