Brunel Pension Partnership has appointed three managers to run a global small-cap fund with a mandate of around £300m (€327m).
American Century, Kempen Capital Management and Montanaro Asset Management were appointed to the mandate after the UK local authority asset pool whittled down its search to 12 managers, five of which were shortlisted for due diligence meetings.
“The global small-cap fund gives our clients access to a range of investment approaches, with low correlation between our chosen managers,” said David Cox, head of listed markets at Brunel.
“The manager allocations reflect how the fund is constructed to ensure a balancing of conviction, risk and liquidity considerations.”
The sub-fund largely targets investments in developed markets, as defined by inclusion in the MSCI World Small Cap index. The sub-fund outperformance target is +2-3% net of fees for global small-cap.
AP7 sticks with BNY Mellon, again
Swedish state pension fund AP7 has reappointed BNY Mellon as its global custodian, continuing a 14-year relationship.
The re-appointment concludes a detailed public procurement process that started in March 2019.
Tina Nylund, chief operating officer at AP7, said: “AP7 is facing significant growth and change. BNY Mellon met all our requirements and will be able to further support our successful transition to a new operating model.
“We look forward to further strengthening and enhancing our relationship with a partner that has the digital and data capabilities to help us on our own digital transformation journey.”