News Round-up: Gilt yields, LGPS Central, EIB £300m loan, LA outsourcing boom
0Gilt yields fall on rates decision
The yield on benchmark UK 10 year gilts fell to new record lows after the decision of the Bank of England’s Monetary Policy Committee to lower interest rates. In a unanimous decision, the MPC voted to reduce the rate from 0.5% to 0.25%. It also announced that it would make £60bn in gilt purchases and up to £10bn of corporate bonds.
LGPS Central proposes investment management centre of excellence
The proposed £34bn LGPS Central Pool has proposed the creation of a regional centre of excellence for investment management as part of its pooling proposals to central government. The pool says that the new centre could “offer services to other pension funds, charities and endowments to develop internal investment management capabilities for the collective benefit of the participating funds, in order to provide wider investment choice and market competition.”
EIB agrees £300m housing association loan
The European Investment Bank has approved a £300m loan to housing association Genesis, weeks after the UK voted to leave the European Union. The loan will finance investments between 2016-2020 to retrofit and build new social and affordable housing as well as associated infrastructure facilities.
Council and housing association in JV deal
Peterborough City Council has announced plans for a new joint venture company with housing Cross Keys Homes to build new homes. The company would build all types of housing including affordable, market rent and outright sale homes, investing £14.6m from Right to Buy receipts.
Outsourcing deals by councils boom
Outsourcing deals signed by local authorities reached £684.9m in the first six months of 2016 – up 84% on the same period last year. The number of deals also rose by 50% according to the Arvato Outsourcing Index. Arvato put the rises down to councils securing IT deals to drive business transformation.
LGPS Board calls for views on academisation impact
The Local Government Pension Scheme Board has invited proposals to help it develop options in dealing with plans to convert all schools to academies. The outcome of the board’s initial work will be considered by the scheme advisory board before recommendations are potentially made to the secretary of state.
