London LGPS pool appoints new chief investment officer
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LGPS pool London Collective Investment Vehicle (LCIV) has appointed Mark Thompson as its new chief investment officer (CIO).
Thompson joins from HSBC Bank’s UK pension scheme, where he has been CIO for more than eight years, unusually overseeing both a defined benefit and defined contribution scheme.
His appointment comes two months after LCIV’s new chief executive Mike O’Donnell took over from predecessor Mark Hyde-Harrison.
LCIV chairman Lord Bob Kerslake said: “I am absolutely delighted that Mark is joining us.
“He comes with enormous experience and a strong track record of achievements. This will be of enormous benefit to the London CIV as we move forward.”
Thomspon will start in his new role in September.
Prior to working at HSBC, he worked for more than 20 years at Prudential/M&G Investments in a variety of senior roles.
In April, O’Donnell outlined some of ongoing sensitivities that face the LCIV as it attempts to meet the investment needs of its member funds.
He said: “ Of course, a perennial challenge of ours is that we have 32 shareholders and 32 potential investors.
“The other pools are much smaller with eight or nine members. Working with 32 shareholders and investors is always going to have its challenges.
“The pool being aligned to what the funds are trying to achieve with their investment strategies, and making sure we’ve got everything lined up for them, is a key objective.”
The LCIV has struggled with finding an investment model that satisfies its member funds.
Last year, the LCIV suggested a simplified model, giving funds a choice of three blended investment mandates in addition to a separate passive option.
However, the idea was given a lukewarm response from a number of member funds.
The reforms were proposed after a review criticised the LCIV’s governance and investment regime following a critical review released last year.
The review had found that some funds are not fully engaged “and seem to be growing increasingly disgruntled” with the body.
Last year, London Borough of Barnet delayed a decision on transferring a direct lending mandate of up to £40m to the LCIV.
In what it described as a “test case”, the council has asked its pensions investment adviser, Hymans Robertson, to assess the merits of the move.
Councillors voted to carry out the analysis because the council was understood to be happy with the mandate’s current manager, Alcentra.
However, draft statutory guidance released for consultation by the government in January proposed giving pools a deadline of 2020 after which they should not normally make investments outside their LGPS pool.
Speaking this week, Thompson said: “I am delighted to be joining the team at London CIV.
“I look forward to contributing to the further development of LCIV, and to helping the organisation meet the expectations and requirements of its shareholders.”
