• Home
  • About
  • 151 IMPACT AWARDS
  • Subscribe
  • Conference
  • Events Calendar
  • Webcast151
  • MOTB
  • Log In
  • Register

Room 151

Impact Awards –>
  • Treasury
  • Technical
  • Funding
  • Resources
  • LGPS
  • Development
  • 151 News
  • Blogs
    • David Green
    • Agent 151
    • Dan Bates
    • Richard Harbord
    • Stephen Sheen
    • James Bevan
    • Steve Bishop
    • Cllr John Clancy
    • David Crum
    • Graham Liddell
    • Ian O’Donnell
    • Jackie Shute
  • Interviews

Lancashire fund looks to future deals after Eurostar setback

0
  • by Colin Marrs
  • in LGPSi
  • — 5 Mar, 2015

Lancashire County Pension Fund is undeterred from bidding for future flagship government privatisations, despite losing out this week in its attempt to buy the government’s stake in Eurostar.

The council was beaten to the punch by Canadian regional pension fund Caisse de dépôt et placement du Québec (CDPQ) and Hermes Infrastructure, which together agreed to acquire the government’s 40% stake in Eurostar for £585.1m.

Lancashire made it to the final shortlist of bidders, but is understood to have lost out because its bid was slightly lower than the winning consortium.

Mike Jensen, chief investment at LCPF, told Room151: “We have got to be pretty pleased. We got to the final table and were not outbid by much. The process has also given us a lot of profile.”

Jensen said that the fund would now be looking at the Treasury’s pipeline of proposed privatisations, including Ordinance Survey and the Met Office.

“We will seek to work with them and if there are any opportunities that could offer the same high quality return that Eurostar would have done, then we will look at those.”

Jensen would not reveal how much the fund had bid for the Eurostar share, how much the process cost or its expected return on investment.

However, he said that the fund had produced a range of calculations, and that even the most conservative scenario would have seen a return that comfortably beat its minimum requirement of 8% a year for infrastructure investments.

On the cost of bidding, he said: “In comparison to the bid, and to the fees we would pay to other fund managers, it was very small indeed.”

Jensen said that council pension funds could be at a competitive disadvantage to large private funds because they have more resources and more sophisticated governance structures to cope with the upfront bidding and due diligence processes.

He also said that certain bidders, such as sovereign wealth funds can sometimes accept a lower rate of return because they need to get money out of the door.

However, the LCPF’s recently announced deal to collaborate with the London Pension Fund Authority would make it easier to bid for flagship investments similar to Eurostar.

David Borrow, deputy leader of Lancashire County Council, and holder of the finance portfolio, said the Eurostar project was testament to the fund’s creation of an expert finance team.

He said: “We have for a long time had the scale of investments required to be in this kind of process, but only over recent years have we developed the expertise to know whether and how to go about it.

“Our strategy on investments is first and foremost to ensure the security of our assets which, as events such as Lehman Brothers and the Icelandic banking crash proved in the last decade, doesn’t mean simply putting money in the bank.

“We will continue to seek out the most secure investment opportunities we can find for the benefit of our local communities and members of the pension scheme.”

Photo (cropped): David Jones, Flickr

Share

You may also like...

  • LGPS is on a ‘strong footing’ but challenges lay ahead 21 Jul, 2020
  • LGPS governance review sets out s151 training steps LGPS governance review sets out s151 training steps 21 Nov, 2019
  • Sentiment soars on equity rally Sentiment soars on equity rally 7 Feb, 2012
  • London CIV mulls global launch amid rising concerns on UK infrastructure London CIV mulls global launch amid rising concerns on UK infrastructure 30 Nov, 2017

Leave a Reply Cancel reply

You must be logged in to post a comment.

  • Register to become a Room151 user

  • Latest tweets

    Room151 2 hours ago

    Impact Awards: Liverpool’s cafe culture and Warrington’s investment in homes: The CCLA/Room151 Impact Awards showcase  finance teams with a direct impact on their local communities and the environment. This week we spotlight Liverpool City Council’s… dlvr.it/RxJsKb pic.twitter.com/dEYpaz6HP0

    Room151 5 hours ago

    Doing something in #localgov #finance for housing or regeneration? Check out the 'Place Shaping' category room151.co.uk/impact-awards/… sponsored by @31tenConsulting in the CCLA/Room151 Impact Awards. #timetoenter !! pic.twitter.com/dU99vE6Wws

    Room151 24 hours ago

    Doing something in #localgov #finance for Adult Social Care & Health? Check out the ASC&H category room151.co.uk/impact-awards/… sponsored by Fundamentum Social Housing REIT in the CCLA/Room151 Impact Awards. #timetoenter !!

    Room151 24 hours ago

    Doing something in #localgov #finance for the environment? Check out the 'carbon management' category room151.co.uk/impact-awards/… sponsored by @ACSLLP in the CCLA/Room151 Impact Awards. #timetoenter !!

    Room151 24 hours ago

    So what are the seven categories for the CCLA/Room151 Impact Awards? Here they are room151.co.uk/impact-awards/… #localgov #finance #outcomes

    Room151 1 day ago

    Why should LGPS be concerned about rising inflation?: The impact of the coronavirus pandemic, lockdown and wider economic uncertainty created  deflationary pressures which raise important considerations for the Local Government Pension Scheme writes… dlvr.it/RxF7Fs pic.twitter.com/JlcjROBIpz

    Room151 2 days ago

    JOB ALERT: LPFA Finance Director vacancy: London Pensions Fund Authority Finance Director and s151 Officer Competitive salary and benefits The largest Local Government Pension (LGPS) provider in London with around £6.5 billion of assets and 135[...] dlvr.it/RxBdJP

    Room151 2 days ago

    Richard Harbord: Further signs that local government finance is failing: The crisis in Liverpool and a fix for education budgets are further indication that local government finance is in need of a root and branch review. Even for those students[...] dlvr.it/Rx9PSV pic.twitter.com/sAanC2gEyu

    Room151 1 week ago

    Impact Awards: Finance helps launch school meals company and support business during lockdown: The CCLA/Room151 Impact Awards will showcase the way finance teams have a direct impact on their local communities and the environment. This week we spotlight… dlvr.it/RwnlF4 pic.twitter.com/AJhne1MVG4

    Room151 1 week ago

    "This work has made a vital, practical contribution to ensuring people have been supported through the pandemic." #impact #151awards #covid #s151 room151.co.uk/treasury/impac… #impactcasestudies #councilfinancemakesadifference

    Room151 1 week ago

    room151.co.uk/impact-awards/ #passiton #localgov #s151 #151awards pic.twitter.com/A0uO0dwBkM

    Room151 1 week ago

    Financial pressures loom for 2023 and beyond: Kate Ogden writes the government has addressed most of the short-term Covid-19 financial pressures facing English councils, but problems loom in 2022-23 and the years following. As we enter the[...] dlvr.it/RwfDsz pic.twitter.com/hpv2R09w75

    Room151 2 weeks ago

    Calling all #localgov finance officers and #s151s room151.co.uk/impact-awards/ It's the #151Awards Thanks to the @LGALocalism for helping us get the word out along with all the LA treasury societies. pic.twitter.com/Nkal9BrH1J

  • Categories

    • 151 News
    • Agent 151
    • Blogs
    • Chris Buss
    • Cllr John Clancy
    • Dan Bates
    • David Crum
    • David Green
    • Development
    • Forum
    • Funding
    • Graham Liddell
    • Ian O'Donnell
    • Interviews
    • Jackie Shute
    • James Bevan
    • Jobs
    • LGPSi
    • Mark Finnegan
    • Recent Posts
    • Resources
    • Richard Harbord
    • Stephen Fitzgerald
    • Stephen Sheen
    • Steve Bishop
    • Technical
    • Treasury
    • Uncategorized
  • Archives

    • 2021
    • 2020
    • 2019
    • 2018
    • 2017
    • 2016
    • 2015
    • 2014
    • 2013
    • 2012
    • 2011
  • Previous story Councils miss out on £2.8bn
  • Next story Orkney diversifies oil wealth fund

© Copyright 2021 Room 151. Typegrid Theme by WPBandit.