Brunel awards ACS operator mandate to FundRock

Brunel awards ACS operator mandate to FundRock

Brunel Pension Partnership has appointed FundRock Management Company as its authorised contractual scheme (ACS) operator for an investment management vehicle set to oversee around £7.5 billion of actively managed equities.

Brunel, which manages £30 billion of assets for 10 local government pensions scheme funds, opted for the ACS model for its new investment management vehicle because it provides tax transparency, and offers simplified operations and transitions, meaning lower costs.

Structure and costs were important to Brunel’s decision in the appointment of an operator, according to chief operating officer Joe Webster.

He explained: “We chose FundRock because they offer the level of commitment and security we’re after, and value for money. The model we’ve selected frees us up to focus on choosing quality managers and lets FundRock do what they are good at.”

Under the chosen model, Brunel acts as a sponsor and investment manager of the ACS. FundRock will be responsible for meeting regulation requirements and contractual arrangements.

Webster said: “The ACS delegates the fund management to us and we sub-delegate to our chosen fund managers. This model allows us a good degree of flexibility when choosing investment managers. The ACS also performs risk control, adding an additional level of governance and control over our transactions for clients. All in all, it’s a good decision for our shareholder client funds in the Brunel partnership.”

Revel Wood, CEO at FundRock, commented: “We are delighted to be embarking on a long-term partnership with the Brunel team, combining our strong heritage of fund governance and the innovation of Brunel to deliver a robust and efficient pension pooling solution.”

Categories: News, UK Pensions

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