News Roundup: Border to Coast’s new COO, City of London’s investment returns, Barclays ringfencing
0Miller lands LGPS pool COO role
Fiona Miller, head of pensions and financial services at Cumbria County Council, has been appointed the first chief operating officer at the Border to Coast Pensions Partnership pool. Miller will move from the council to her new role in January, and will report to chief executive Rachel Elwell. Miller said: “I am pleased to have been given the opportunity to continue to take a leading role in the next phase of the journey that I started with our partner funds over two years ago, which was to create a long-term investment driven pool, working solely for the benefit our members, sponsoring employers and tax-payers.”
City of London earns 0.6% on funds
The City of London earned an average rate of 0.6% on £975.2m of internally managed funds as at 31 March 2017. In an end of year review, the City also said that cash balances decreased from £858.8m to £768.9m over the year, following the payment of £200m to the Treasury as part of its contribution to Crossrail. The report said the City is currently in the process of selecting an ultra short dated/short dated bond fund as an additional mandate for its cash balances.
Councils face abuse damages liability
Councils could face damages pay-outs following a ruling by the Supreme Court, according to the Law Society. The court last week ruled that Nottinghamshire County Council was “vicariously” liable for sexual and physical abuse suffered by a child in foster care. The Law Society said: “While these cases by their very nature are complicated, local authorities will be alarmed at the implications of the imposition of vicarious liability for the abuse by the foster parents in the absence of any finding of negligence.”
S&P releases Barclays ringfencing ratings
Ratings agency Standard & Poors has raised its rating on Barclays Bank to A/A1 due to the impact of ring-fencing. From 2018, Barclays will see a new ring-fenced bank covering UK retail banking operations, consumer credit cards business, UK-based wealth, and small and midsize enterprise business banking. Councils will continue to be served by Barclays Bank plc. Fraser Mackay, head of coverage, public sector, at Barclays, told Room151: “This gives local authorities assurance that they are not going into a risker part of the bank following ring-fencing.” However, S&P maintained its negative outlook, due to a “weaker operating environment following the UK’s decision to leave the EU.”
Basildon appoints commercial property portfolio adviser
DTZ Investors has been appointed by Basildon Council to advise it on the creation of a new property portfolio to generate income and fund council services. The firm will develop and implement an investment strategy, provide asset management services and execute transactions on an advisory basis. Investment will be focussed on multi-let assets in major urban centres. Gary Canham, chairman of Basildon Council’s commercial and strategic asset acquisition sub-committee, said: “By investing in commercial property Basildon Council hopes to generate new income to offset the reductions in central government funding. Research into local authority asset acquisition strategies shows that appointing a specialist property fund management adviser significantly reduces the risks involved.”
LPP hires ‘devil’s advocate’
LGPS pool Local Pensions Partnership has appointed asset adviser Albourne Partners to be a “devil’s advocate” on its alternative investments. The firm will carry out due diligence on liquid alternatives—covering risk premia strategies, active relative value strategies and dynamic directional strategies—plus private equity, private credit and infrastructure. The appointment is for an initial term of 12 months, with the right to renew at 12 month intervals for a period of 10 years. Albourne Partners would be paid £2.7m if the full 10 year renewal provision is fulfilled.
