Brunel Pension Partnership, Bristol, England, selected three managers to run a total £1.2 billion ($1.5 billion) allocation to sustainable equities, a spokeswoman said.
The £30 billion pool of U.K. local authority funds hired Ownership Capital, RBC Global Asset Management and Nordea Asset Management from a group of eight shortlisted managers. The allocation is funded by new assets transferred from the pool's member funds.
Brunel's first sustainable fund has a focus on positive inclusion rather than negative exclusion and is benchmarked against the MSCI All Country World index.
The portfolio has a significant underweight to the energy sector and an aggregate carbon intensity that is significantly lower than its benchmark, a news release said.
"The three managers we appointed share a broad investing style and a prioritization of sustainability, yet their approaches are also different enough to provide clients with the diversification they were looking for," David Cox, head of listed markets, said in the release.