Brunel Pension Partnership, Bristol, England, selected three managers to run a £300 million ($388 million) allocation to global small-cap equities, a spokeswoman said.
The £30 billion pool of U.K. local authority pension funds selected Kempen Capital Management, Montanaro Asset Management and American Century Investments to manage the allocation. The size of each mandate was not provided. The portfolio was funded with new assets from member.
Brunel evaluated 33 different strategies as part of a two-stage selection process, inviting 12 managers to tender and shortlisting five of them, the fund said in a news release Wednesday.
"The blended solution gives clients access, within the small-cap universe, to a range of market cap exposure," Stephanie Carter, portfolio manager for global small-cap equities, said in the release. "We also worked hard to assess managers on how they would integrate our responsible investment principles and engage with holdings. As a result, each mandate has robust or developing environment, social and governance integration and engagement, in an asset class sometimes seen as a laggard in this area," she said.
An RFP was issued in September.