Government loses LGPS High Court hearing
Guidance issued by the government that Local Government Pension Scheme investment policies could not contradict UK foreign policy has been ruled unlawful by the High Court. LGPS funds and campaigners complained that the policy limited the ability of the scheme to operate an ethical investment strategy. The case against the government was brought by the Palestine Solidarity Campaign which argued that the government had acted outside of its powers.
Aussie firm joins Capita Asset Services race
Australian financial services company Link Group has joined the race to buy Capita Asset Services, according to reports. The company provides shareholder management and fund administration services to more than 2,500 clients. Other firms already linked to the treasury advice arm of Capita are Chicago-based private equity fund GTCR, European rival CVC Capital Partners and European buyout fund BC Partners.
LGPS Central awards deposit and custody contract
The LGPS Central Pool, covering eight Midlands authorities, has appointed Northern Trust to provide deposit and custody services. The firm beat off competition from two other unnamed firms to scoop the contract. Participating funds in LGPS Central are Cheshire, Derbyshire, Leicestershire, Nottinghamshire, Shropshire, Staffordshire, West Midlands (including the West Midlands Integrated Transport Authority) and Worcestershire.
Fitch launches MMF guide
Ratings agency Fitch has published a guide to European money market fund reform. European MMF reforms were signed into law on 14 June, 2017 and will become effective in early July. This will trigger an implementation period of 12 months for new funds and 18 months for existing funds.
Campaigners criticise fracking investment
Scottish local authority pension funds have £406m invested in companies which make money from fracking, according to a new report. Friends of the Earth Scotland says that Strathclyde Pension Fund has the largest holding, at £142m. FoE campaigner Flick Monk, said: “Our local government pension funds should be investing for the long-term, not undermining our future by gambling on the industries driving global climate change.”
Councils urged to use assets to support services
Councils must have a commercial mindset and work with partners to make the most of their assets, according to think tank Centre for Cities. In a report published this week, it said: “Using public assets to gain a commercial return that can plug gaps in budgets left by nearly a decade of austerity has been a key driver for cities to form partnerships over recent years. The potential to drive up jobs, wages, housing development and invest in transport should be the goal for assets in the next decade.”
