Neuberger Berman, a private, independent, employee-owned investment manager, has been awarded a GBP1.3bn climate transition-related multi-asset credit mandate by the Brunel Pension Partnership.
The Climate Transition Multi-Asset Credit strategy invests across a broad array of credit sectors, with the focus on sub-IG, aiming to outperform cash rate by 4-5 per cent pa over the cycle. It has been designed to align the portfolio with the Paris Climate Agreement, delivering a portfolio with net zero emissions by 2050. Interim carbon reduction targets have been set for 2025.
The mandate will be run by the firm’s multi-sector credit investment team, which includes senior portfolio managers Dave Brown, Joe Lynch, and Norman Milner.
Ed Jones, head of UK institutional client business, says: “We’re extremely pleased to be able to help Brunel’s LGPS clients achieve their investment goals by offering the full breadth of Neuberger Berman’s fixed income capabilities in a single multi-asset credit fund.
“With the importance that Brunel places on ESG and the climate transition, we’re honoured to also be recognised for our commitment to responsible investment and ability to seamlessly integrate climate risk considerations across fixed income sectors.”
Commenting on the launch of its Multi-Asset Credit fund, David Cox, head of listed markets at Brunel, says: “The new fund gives our clients and their members access to sub-investment grade credit across a range of sub-classes. After a rigorous search and analysis process, we are pleased to be partnering with Neuberger Berman who displayed the investment expertise and Responsible Investment acumen we were looking for – as well as providing a diversity of style.”
The Brunel Pension Partnership – one of eight national Local Government Pensions Scheme pools, bringing together more than GBP35 billion of investments – seeks exposure to strategies targeting solutions to sustainability issues, as well as benefits to society as a whole.