Decision details

LGPS Pooling of Investments

Decision Maker: Pensions Committee

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No

Decision:

The Committee considered this report that provided an update on the Council’s work to adhere to the “Local Government Pension Scheme (LGPS): Investment Reform Criteria and Guidance” published in November 2015 which required the pooling of the Fund’s investment assets with other LGPS funds from April last year.

 

Members were reminded that for the purposes of pooling the Council had aligned itself with 9 other funds in South West England and was working with those funds to create an FCA regulated investment Company, Brunel Pension Partnership Ltd, (BPP).

 

It was reported that £507.8m of passive assets were transferred from management by the internal team to Brunel (sub-managed by LGIM) last July and £436.5m of active UK equity assets were transferred from management by Aberdeen Standard Investments to Brunel (sub-managed by Aberdeen Standard Investments, Baillie Gifford and Investec) last November.

 

It was also noted that the Private Markets team was now fully established and had taken some initial commitments from funds, but not Somerset at this stage. Preparations for the move of the Fund’s property assets from LaSalle to Brunel were also underway.

 

In response to a question it was stated that it was anticipated that the Brunel Pensions Partnership would allow the fund to make significant savings over time with the Pension Fund estimated to make savings of £27.8m in the period to 2036, after costs. A significant portion of the likely costs were front loaded, and it was anticipated that the Fund would breakeven in 2024.

 

The report and update were accepted.

 

 

Publication date: 24/06/2019

Date of decision: 07/06/2019

Decided at meeting: 07/06/2019 - Pensions Committee

Accompanying Documents: