All the main developments from the pooling process.
The Financial Conduct Authority has approved the Longview Global Equity and Henderson Emerging Markets sub-funds for London CIV. Current investors in Longview will transition a little under £500m while the CIV has had indications of a further £500m. Henderson meanwhile has interest amounting to £250m based on meetings held in May to meet fund managers.
Andrew Warwick Tompson was appointed chief executive in May. Executive director for regulatory policy at the Pensions Regulator at the time of his appointment, Warwick is due to take up his post in July. Joanne Segars, non-executive chairman at Central and former chief executive of the Pensions and Lifetime Savings Association, said: “His appointment is a significant step forward and I am delighted that we have been able to secure the services of someone with his undoubted talents.”
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In June the Brunel Parternship started building its leadership team with the appointment of three non-executive directors: Mike Clark, Frédérique Pierre-Pierre and Steve Tyson. Brunel said the non-executives would work on recruiting the pool’s executive team as well as oversee the implementation of the pool’s strategy.
Seven LGPS funds from the ACCESS pool have said that would procure services under a multi provider framework agreement for passive investment management services. Those funds include Essex, Cambridgeshire, Hampshire, Kent, Northamptonshire and Suffolk. UBS, BlackRock, Legal & General and Deutsche Asset Management have been appointed to the framework.
Border to Coast Pensions Partnership (BCPP)
One of the biggest issues facing pension pooling is the integration of local government law with Financial Conduct Authority legislation, according to Fiona Miller, head of pensions and financial services, and deputy section 151 officer, LGPS, at Cumbria County Council, a member of BCPP. She said: “The biggest issue is people understanding that local government legislation and Financial Conduct Authority legislation do not necessarily make good bed fellows. … but as with any large project we have a detailed project plan, have employed a lot of professional support and then just tackle each unexpected issue as it comes up and tick them off the list.”
Local Pensions Partnership
Local Pensions Partnership has launched a global infrastructure fund with committed capital expected to be £1.5bn at close in September this year. A statement from LPP said the fund will aim for assets predominantly in the UK, North America and Europe. Susan Martin, LPP Chief Executive, said: “This new fund capitalises on our extensive knowledge and experience in what is a highly illiquid asset class. In pooling the infrastructure allocations of our shareholder pension schemes, the fund will also be an attractive vehicle for other investors looking to build their exposure to cost-efficient, diversified infrastructure assets.”