We use cookies to support features like login and allow trusted media partners to analyse aggregated site usage.
To dismiss this message and allow cookies to be used, please click "Continue".

Continue

Twitter board

Follow us
  • My week on Twitter 🎉: 2 Mentions, 3.3K Mention Reach, 5 Likes, 6 Retweets, 7.76K Retweet Reach. See yours with… https://t.co/IZfviidt4H17 hours ago
  • Friday View: Trustees feel the heat over climate change - bankers' pensions back in black - TPR suspends trustee -… https://t.co/kUKa8QUF9w3 days ago
  • Increased regulatory oversight will be risk-based, TPR keyperson will meet schemes deemed riskier several times a y… https://t.co/wUiKPGESaU5 days ago
  • Lesley Titcomb, TPR chief executive says change is on its way, the regulator will increase oversight between valuat… https://t.co/Wu8Pv6TfqS5 days ago
  • Join us and @AonRetirementUK on the 4th of July at the luxurious Victorian Bath House featuring educational presen… https://t.co/r1abr8Qls06 days ago
  • DWP wants trustees to feel the heat over climate change https://t.co/bs25DvyWGF #ESG #climatechange https://t.co/dZEXB0g8a46 days ago
  • My week on Twitter 🎉: 3 New Followers. See yours with https://t.co/mCw3VcMQGw https://t.co/3kEHNr3xyz7 days ago
  • Friday View: Heathrow's £325 million buy-in - Auto enrolment for the gig economy - Brunel opts for ACS structure -… https://t.co/vsnML1Vzb510 days ago
  • Pimlico Plumbers- Could gig economy workers be auto enrolled? https://t.co/qgrlWxMUW8 #gigeconomy #autoenrolment… https://t.co/wnDH18iPxG10 days ago
  • RT @eVestment: Workers in the #UK are open to increasing their retirement savings and tend to place greater emphasis on workplace #pensions…11 days ago
  • The June issue of portfolio institutional is now out: Featuring our take on #carillion and lessons for trustees as… https://t.co/yC2PNgoaPr12 days ago
  • RT @PensionsSion: Aon's very own John Belgrove shares his views in this piece. Worth reading... https://t.co/VYEJWjAU3z12 days ago
  • My week on Twitter 🎉: 2 Mentions, 3.29K Mention Reach, 2 Retweets, 3.27K Retweet Reach. See yours with… https://t.co/MeoES7Ch3L14 days ago
  • Friday View: South Yorkshire hedges pension risk- Recruitment execs face prison over pension scam - Johnston Press… https://t.co/9fV8Z48WtF17 days ago
  • RT @cfjescott: A recent piece of mine on the @CMAgovUK investigation into investment consultants in @portfolio_inst #investment https://t.c…19 days ago
  • Our ESG Roundtable: Better Long-term outcomes? Available to download now https://t.co/o7T8kWSwWY https://t.co/oHs4VlRK9E21 days ago
  • Active vs Passive : In 2016 investors withdrew around $285bn from active funds and pumped almost $429bn into passiv… https://t.co/tjpxhTxW5Z21 days ago
  • RT @WhtstheDiehlio: .@AitkenRL spoke with @graniteshares CEO Will Rhind about the ongoing active vs. passive debate. Check out their though…21 days ago
  • Green is the new black. A record sum is expected to be raised under the green bond banner this year, but is it doom… https://t.co/JYP8k0ZfZk23 days ago
  • Our Cover Story! Property: Solid Returns - Low gilt yields are forcing schemes to pile into bricks and mortar. Mark… https://t.co/9nyjFp0Z4R23 days ago

Interviews

West Midlland Pension Fund’s Jill Davys: “I am reluctant to overpay for assets”

West Midlland Pension Fund’s Jill Davys: “I am reluctant to overpay for assets”

Mark Dunne
Tuesday 12th June 2018

A month after the local government pension scheme pool for the Midlands was launched, West Midlands Pension Fund assistant director of investments and finance Jill Davys tells portfolio institutional about the first month as a pool, costs, infrastructure, climate change and emerging market debt.

The £40bn local government pension scheme pool in the Midlands was launched in April. How was the transition?
Pooling is going reasonably well. We have transitioned about a third of West Midlands’ assets across to LGPS Central and into authorised contractual scheme (ACS) structures, primarily internal passive.

So we are in the first three sub-funds that LGPS Central has launched. Despite the fact that it took place over the Easter weekend, it all seemed to go reasonably smoothly without too much stress on my part.

What products and services are you planning to launch with your partners in LGPS Central?
LGPS Central already has global equity mandates out for tender. That should involve a number of the partner funds in the pool, in terms of transferring assets. The plan is that LGPS Central will launch the sub-fund in September. Partner funds will then transfer assets into that sub-fund.

Has the pool received much interest from asset managers yet?
LGPS Central is running those tenders almost exclusively, so there is very little involvement from partner funds. Being a regulated entity, we are quite clear about their responsibilities and ours. So they are running that selection process. I understand that LGPS Central has had a  strong response and they are filtering that down to do some more dedicated proposals from a number of fund managers. I am not sure how many they are going to take it down to and how many managers will ultimately sit in that sub-fund.

What other changes have you made to the investment side of the fund in the past 12 months?
The fund sets medium-term strategic asset allocation targets, but allows for quite a bit of flexibility around those targets. This is out of necessity as with illiquid assets it can take a while to get those in place. It is also to allow flexibility to respond to market movements. So we have been trying to move closer to those medium-term targets. In the past three months we have taken some money out of what we call the ‘growth assets’, which are equities, and have put a bit more money into income and a bit more into the stabilising assets. So, primarily with the income assets, we are focusing on infrastructure at the moment.

Why infrastructure?
We have a medium-term target of 6%. We are getting towards that. As of the end of March 2018, we are probably about 4%, so there is a little way to go. Basically, given the increasing maturity profile of the fund, we are looking to tilt the portfolio a bit more towards income-producing assets as well as for longer-term returns.

Why are you underweight on your infrastructure target?
We have struggled on occasion to perhaps get the money in where we would like to. We have an investment director at LGPS Central for infrastructure and property. We are working closely with him to try and identify opportunities at the moment. That is a blend of direct investments and funds, where appropriate.

Is it because of competition or a lack of  available assets?
In some instances there has been some quite tough competition. I am reluctant to overpay for assets, so it is about trying to identify the assets that are going to give us longer-term returns with lower-risk profiles.

Page: 1 2 3
0

Leave your comment

View our comments policy

Please login or register with us to leave a comment. It's completely free!