How different will it be from other LGPS pooling vehicles?
This body will aim to learn from the experiences of the London CIV and the Lancashire/ LPFA model. This is a trail that has already been blazed and we will look to take the learning points that have already been encountered.
What sets Border to Coast Pensions Partnership apart from the others?
The compelling selling point with Border to Coast Pensions Partnership (BCCP) is its substantial internal investment management capability. Three funds – East Riding, South Yorkshire and Teesside – are already substantially internally-managed and that capability makes up 34% of the asset pool. If we have substantial proportion managed internally, we will need FCA approval. Now
if you are externally managed in the entirety there is a question as to whether you need that FCA approval.
Will the responsibility for liability management and asset allocation remain with the counties?
Yes, the administering authority will still exist in terms of the governance requirements for running a pension fund, such as asset allocation, key performance indicators, risk management and the basic administration of the fund. The pool will have the templates of 13 different funds’ asset allocations and will collate and invest on that basis.
Will there be some rationalisation of managers as a result of pooling?
I think it would be entirely possible that in order to create efficiencies there will be some rationalisation of fund managers across the piste.
What timeline are you working towards for completion of the project?
There is a lot of work to be done between now and July when we have to submit the detailed proposal. Assuming we are given the go-ahead by the Treasury, we hope to have governance structures agreed by 30 September and then we have various considerations around risk, legal structures and specifics of the type of vehicle we are going to use. We hope to then have FCA approval and transition management planning by the end of 2017, the commencement of transition by April 2018 and full implementation of listed assets by the middle of 2018.
