LGPS Central launches three funds
0LGPS Central, the £40bn Local Government Pension Scheme pool, has launched three new pooled funds as it begins operations.
The pool is one of eight which began to transfer assets on 1 April as part of the pooling process — aimed at reducing investment fees.
LGPS Central has started life with a global equity passive fund, a UK equity passive fund, a global dividend growth factor equity fund.
In addition, the pool will be responsible for eight advisory and discretionary mandates on behalf of its partner funds.
Together, these new funds and mandates mean that LGPS Central is already responsible for £12bn of assets transferred from member funds.
Joanne Segars, chair of LGPS Central, said: “Today is an important day for LGPS Central. After years of planning, we can now make a reality of asset pooling as we start to deliver cost savings, enhanced risk-adjusted returns after cost and a broader set of investment opportunities to our partner funds.
“We are at the start of an exciting journey.”
The three funds will be managed through an authorized contractual scheme.
The fund said that it expected to award the tender for a global active equity fund, worth around £2.5bn, in the autumn.
A contract for a separate emerging markets fund, worth around £2bn, is expected to be awarded around the same time.
The start of operations has seen staff from individual funds move into the new pool, bringing the total number of staff members up to 32, according to pool chief executive Andrew Warwick-Thompson.
Meanwhile, Brunel Pension Partnership, has become the first LGPS pool to sign up to the Principles for Responsible Investment.
The independent organization supports a network of signatories incorporating the UN’s environmental, social and governance factors into their investment and ownership decisions.
PRI chief executive Fiona Reynolds said: “Their recognition of the importance of looking at ESG issues in the investment cycle will, we hope, send an important message to other UK asset owners.”
In other pool news, Ian Greenwood has been appointed chairman of the Northern Pool, replacing councillor Kieran Quinn, who died before Christmas.
