Two pension pools have launched new advisory services.
Firstly, Border to Coast Pensions Partnership, the largest local government pension scheme (LGPS) pool, is expanding its investment advisory capabilities, including the creation of a head of investment advisory role.
The changes reflect the pension pool’s 2030 strategy – developed in conjunction with its 11 LGPS partner funds – and aligns with the standards set out in the government’s LGPS Fit for the Future consultation.
Therefore, Peter Gent is to join Border to Coast as the new head of investment advisory.
In this role Gent will be responsible for developing tailored investment policies that achieve investment objectives consistent with each partner fund’s investment philosophies, funding policies and risk tolerances.
Gent will also work with Border to Coast’s in-house investment team to develop a research programme to support long-term strategic advice, asset liability modelling and portfolio construction.
Gent is the investment adviser to several LGPS funds at Mercer and, as their UK investment consulting director, has responsibility for the delivery of strategic research to a wide client base.
He is a qualified actuary, with 18 years’ experience working with UK pension funds, predominantly in an investment advisory capacity. He joins Border to Coast at the end of June.
As part of the development, Border to Coast’s head of external management, Graham Long, will take a new role of head of portfolio solutions.
Long will retain oversight of the existing external management team as well as responsibility for the investment team’s input to the new advisory capability and transition management.
A new external management team leader will be appointed in due course.
Border to Coast CEO, Rachel Elwell (pictured), said: “These are exciting changes which will enable us to deliver greater value and resilience for partner funds. Peter is the ideal choice to develop this element of our 2030 strategy, given his experience of working alongside and advising a range of funds across the LGPS.”
Gent added: “I feel privileged to build upon the hard work already undertaken by Border to Coast and our partner fund officers. Together, we will continue to advance our trajectory as a globally leading investor, acting on behalf of asset owners.”
Secondly, London CIV, the investment pool for London LGPS, has also launched a new pension advisory and support service, entitled LGPS PASS, designed to help reduce costs and strengthen long-term sustainability within the LGPS community.
Annual fee savings of more than 50% are envisioned for administrative authorities that adopt LGPS PASS.
The service has already been taken up by a quarter of London CIV’s partner funds, including the London Boroughs of Camden and Merton.
LGPS PASS is a choice of investment advice and results-driven support services that have been built out by London CIV in partnership with London boroughs to help the LGPS community, with a particular focus on driving cost efficiency, generating consistency and increasing expertise.
Investment services include cashflow forecasting, climate analytics, triennial valuation support and strategic asset allocation.
Strategy and policy support includes funding, treasury and investment statements, risk register management, constitution and governance documentation and responsible investment policies.
The launch of LGPS PASS follows calls by many partner funds for London CIV to step in and provide these services at a time when schemes across the country are facing pressure around regulatory reporting requirements, unprecedented challenges to hire and retain qualified staff, and spiraling costs in consultancy fees.
Public-sector spending on management consultancy providers has risen 62% over five years and nine out of 10 councils say they are experiencing staff recruitment and retention problems, according to a workforce survey by the Local Government Association (LGA).
Like the Border to Coast offering, the launch of LGPS PASS also complements the government’s Fit for the Future consultation.
Daniel Omisore, deputy S151 at the London Borough of Camden, one of LGPS PASS’ early adopters, said: “We’ve been working closely with London CIV on the formation of LGPS PASS to ensure we have access to reliable, high-quality support at a time when the pressures on local government pensions are intensifying.”
Dean Bowden, CEO at London CIV, added: “A decade ago, the London LGPS community, came together with a shared vision: to collaborate more effectively, to pool resources, and to deliver long-term value for LGPS members and their futures. Today, that vision remains as powerful and necessary as ever.”
Comments