Brunel Pension Partnership, Bristol, England, hired Quoniam Asset Management and Robeco to run a total of £400 million ($531 million) in global low-volatility equities.
Brunel, which has about £28 billion in pooled assets from 10 local government pension funds, said in a news release the low-volatility global equities portfolio is expected to increase to at least £600 million. A Brunel spokeswoman confirmed the portfolio is set to be split equally between the two managers.
"For this search, two particular areas we were interested in were understanding how managers address risk of valuation bubbles in low-volatility strategies, and their use of environmental, social and governance considerations to help further reduce risk," CIO Mark Mansley said in the news release.
"This (portfolio) will aim to outperform global equity markets over the long term but with lower short-term volatility," Mr. Mansley added.
An RFP was issued in April 2018. Consultant Redington assisted with the search.
Brunel manages the investment of the local U.K. government pension fund assets for administering councils in Avon, Buckinghamshire, Cornwall, Devon, Dorset, Gloucestershire, Oxfordshire, Somerset and Wiltshire as well as the U.K. Environment Agency.