The £6.2bn Avon Pension Fund is to join Local Pension Partnership Investments (LPPI) as its new pooling partner.
The fund is one of seven funds from Brunel Pension Partnership that still needed to find a home after the culling of Brunel along with Access following the government’s Fit for the Future consultation in May.
After reviewing options with support from KPMG, Avon Pension Fund said they agreed that LPPI was a “very good fit”.
They considered factors like: investment strength, cost savings, culture, and alignment with government goals.
Councillor Toby Simon, chair of Avon Pension Fund, said: “LPPI have impressed us throughout this process with their strong investment and advisory capabilities and commitments to their new shareholders.”
And he added: “We see significant opportunities for the new, larger pool to enhance purchasing power, deliver cost efficiencies and unlock access to new investment opportunities.”
It does help shape the LPPI in a potentially new direction, as it was originally spun out from a collaboration between Lancashire County Council and London Pensions Fund Authority, and has until now only had the Royal County of Berkshire as its partner fund.
Chris Rule, chief executive officer of LPPI, added: “We’re very pleased that Avon has selected LPPI as its preferred pool. We’re looking forward to working together closely as partners to achieve Avon’s strategic goals, while delivering pooling’s benefits to its members, employers and taxpayers.”
It still leaves six Brunel partner funds to find new homes by the looming deadline of the end of this month – the government’s original deadline.
These are: Buckinghamshire, Cornwall, Devon, Dorset, the Environment Agency, and Somerset who have yet to make their call on which pool they will join.
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