Railpen has appointed Robeco to manage an initial £1bn global equities mandate, as part of its strategy to combine in-house investment capabilities with specialist external managers.

The appointment will see Robeco using a strategy that combines quantitative and fundamental investment analysis.

Railpen explained that the mandate would complement its existing internal equity capabilities and align its global equities approach with other asset classes, including credit and private markets, where it already uses external managers.

The mandate will be benchmarked against the MSCI All Country World Index (ACWI), with Robeco selected following an open-market review of global investment managers.

Railpen director of public markets, Craig Heron, said: "Railpen follows a hybrid investment approach, combining our in-house expertise with carefully selected external partners where we believe they can enhance outcomes for members.

"Following a thorough, bespoke selection process that reviewed managers from across the global market, Robeco stood out for its ability to integrate fundamental and quantitative investment techniques within a disciplined framework.

"The mandate is designed to complement our existing internal equity capabilities and strengthen the resilience and diversification of our overall public markets portfolio."

Railpen added that it selected Robeco for its style-neutral investment approach, customised solution, and ability to combine quantitative and fundamental analysis, with the appointment intended to strengthen diversification and deliver long-term risk-adjusted returns.

The scheme also highlighted Robeco's approach to responsible ownership and sustainable investing, which it said aligned with its own investment principles.

Railpen head of credit and manager implementation, Caroline Hedges, commented: "Our focus is always on delivering the best long-term outcomes for members.

"In appointing Robeco, we undertook extensive due diligence and secured competitive commercial terms, ensuring we believe the mandate offers strong value for our members.

"Robeco's investment approach and its commitment to sustainable ownership are closely aligned with the Trustee Board's objectives, while supporting Railpen's wider strategy of investing globally to achieve the best risk-adjusted returns for the schemes we serve."

Meanwhile, Robeco chief investment officer, Anton Eser, welcomed the appointment, highlighting the development of the firm's new 'Quantamental' Equity capability.

"Railpen's decision to seed our new 'Quantamental' Equity capability reflects strong confidence in Robeco's longstanding expertise across both fundamental and quantitative investing," he stated.

"By combining the strengths of these complementary disciplines, we have worked closely together with Railpen in developing a distinctive investment solution focused on delivering attractive long-term outcomes."

Eser added that the mandate marked the beginning of a broader strategic partnership between the two organisations.

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