As Border to Coast approaches its 5th birthday chief executive Rachel Elwell reflects on the achievement of building a sustainable organisation, what investment capabilities are still to develop and the priorities for the underlying partner funds.
The coronavirus is an unprecedented test for the UK’s eight Local Government Pension Scheme asset pools. The London Collective Investment Vehicle, the pooling manager for the pension assets of London’s 32 boroughs has lost 15 per cent of the value of its portfolio for the month, and CEO Mike O’Donnell says ensuring liquidity and diversification are priorities in the months ahead.
LPP’s chief investment officer is convinced proper governance is the key to fund collaborations. He has Lancashire County and London pensions on similar paths and has bulked up in-house prowess.
West Midlands is benefitting from savings through boosting in-house management, and is keen to build its allocation to infrastructure. It welcomes the prospect of wider resources and economies of scale from pooling with other local authority schemes.
UK local authority schemes are under pressure to merge. It’s their turn to suggest ways in which pooling investments, or adminstriation, could achieve the economies of scale necessary for survival, but many are resisting the notion that “bigger is better” when it comes to investments. The United Kingdom’s local government pension schemes have begun
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