AWM 2015 Global Update – Monday 23rd November

LAUNCH OF LONDON PENSION SCHEME 

 

  • 89 disparate investment funds,amounting to £25bn, that made up the Local Government Pension Scheme is going to be pooled into five funds.

  • The move is the first of its kind for the UK pension market.

  • This newly created Collective Investment Vehicle (CIV) for the pension funds is expected to save £3m in costs. 

    • The main saving will be the exit of 60 asset managers, leaving 30 managers to administer the new vehicle.

    • Fund mangers were paid £689m by local authority pension schemes in the year to
      the end of march 2015.

  • Allianz Global Investor has been selected to manage the first sub-fund in London’s CIV.

  • The fund will launch with £510m of assets.

  • Hugh Grover, Chief Executive of London CIV, said: “The creation of London CIV will enable the London authorities to achieve unprecedented economies of scale and enable access to opportunities for investment in alternative asset classes the previously may not have been easily achievable for individual funds.

london

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