Two LGPS Pools, London CIV and LPPI are gathering their partner funds this week for their respective annual conferences amid a period of change for the scheme
The beginning of September marks the return to schools and business as usual for many households in the UK and the LGPS is no different with two pools gathering their shareholders to discuss their strategy for the coming year.
The meetings take place against the prospect of significant political change for the LGPS with the newly elected Labour government currently reviewing prospects for consolidation of LGPS funds in a bid to enhance the effectiveness of the scheme.
London CIV’s 32 partner funds are gathering on Thursday this week to take stock of their pooling journey and discuss the road ahead. The pool, which manages the assets of the London Boroughs and the City of London has had a successful year, with its pooled assets rising to £31.6bn, a year on year increase of 18%, according to its latest annual report.
A key driver for the growth in pooled assets has been the expansion of the pool’s private market offering, which attracted more than £3bn in new commitments from partner funds throughout the year.
But with 32 partner funds, the pool is also at the frontlines of the government’s push for consolidation, a challenge which will no doubt play a key role at the event. The pool is also on the lookout for a new chief investment officer after Aoifinn Devitt confirmed her departure in July.
London CIV intends to tackle these challenges by reforming the services it offers to its partner funds, based on the conviction that investment services are only one area where greater efficiency could be achieved. The pool has recently appointed Andrien Meyers as chief proposition officer and is now consulting on expanding its services to discretionary and portfolio advisory services, based on demand from partner funds.
In contrast, Local Pensions Partnership Investment, the £23bn investment manager for Lancashire County Council, the LPFA, the Royal County of Berkshire Pension Fund is facing a somewhat different set of challenges and opportunities due to its different stance on pooling.
Unlike London CIV, LPP has transitioned most partner fund assets into pooled vehicles from the get-go and relies on an internal investment management team, though the asset allocation remains in the hands of individual funds. The pool also offers administration services through Local Pensions Partnership Administration (LPPA).
Its AGM agenda is dominated by macro strategic discussions with delegates discussing among others how to navigate climate risks and opportunities in equities, credit and real estate. The fund is also in the process of expanding its private market fund offering.
This article has been amended to clarify the date of London CIV’s shareholder meeting.
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