Brunel Pension Partnership has confirmed that it is working with its partner funds to explore options for the next stage of its future, after the government rejected the pool's proposed business case and invited the funds to pursue mergers.

Brunel was one of two Local Government Pension Scheme (LGPS) pools that had their proposals rejected by the government, with the Pensions Minister suggesting that the proposals did not meet the government’s vision for the future of the LGPS.

However, Brunel said that it was "very aware" of its "considerable" progress and strengths as
a pool, across client transitions (almost 90 per cent), governance, cost efficiencies and
value for money, asset class range, and responsible investment.

The pool also pointed out that it has already met several of the government's pooling targets and priorities ahead of schedule, noting, for instance, that 32 per cent of all pooled assets under management was invested in the UK at the end of Q1 2024.

In addition to this, it revealed that its UK private fund allocation is already two times the government’s reported 5 per cent mandated minimum (five years ahead of target) – despite the lack of a target UK allocation in initial pooling guideline.

Given this, it said that it believes it is still in a strong position to find a solution that continues to benefit its partner funds and their members, arguing that it did not simply meet the initial aims of pooling, but it "exceeded those aims and blazed a trail".

"For these reasons, we strongly reject any suggestion that weaknesses as a pool
explain the government’s recent invitation to Brunel’s partner funds to seek an
alternative pooling arrangement," it continued.

"Nevertheless, the pace of progress our partnership has already shown means we
remain confident that our impact should, and will, continue.

"We embraced evolution and change when pooling began and thus are one of the most
transitioned pools. We are determined to do the same for the next stage of pooling."

As part of this work, Brunel confirmed that it will continue to engage with the Ministry of Housing, Communities and Local Government and the Treasury as it plans for next steps.

Commenting on the news, Brunel Pension Partnership CEO, Laura Chappell, said: “Our partnership is highly respected among LGPS pools and throughout the
pensions sector, while our leadership on Responsible Investment gives us clout
across the broader financial industry.

"The pool we have built has delivered on the original aims of pooling ahead of schedule for our partner funds and their members.

"As we look to the next stage of pooling, it is crucial that we continue to build on this
progress.”

Adding to this, Brunel pension Partnership client group chair, Mark Gayler, said: “We are very proud of what we have achieved as a pool in our short existence, across all our key agendas.

"We know that our success has come from the strength of working together in partnership. We are exploring options to harness that strength for the future, so that our impact and influence can continue.”

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