08 Jun 2016 Hugh’s reflection
There’s no doubt that being in the vanguard of LGPS pooling and amongst the first to use the Authorised Contractual Scheme fund structure is both exciting and challenging, and as we head towards the half way point of 2016 I’ve been reflecting on what has been achieved, where we are now and how much more there is to do over the coming months and years.
If we think back to 2012/13 this journey began with the aim of developing a collaborative solution to counter the proposal (and overt threat from Ministers) of complete fund merger across all of the 34 LGPS funds in London. London Councils was asked to work with the three Party Group Leaders and colleagues from SLT to develop proposals that would deliver most if not all of the perceived benefits of merger whilst leaving fund sovereignty at the local level.
By the end of 2014 we had proposals on the table for Leaders to consider and in early 2015 boroughs were taking decisions at the local level that fired the starting gun for implementation. Since then we have established the first full scope Alternative Investment Fund Manager in local government, launched one of the first Authorised Contractual Scheme funds in the UK. Just short of £2 billion of assets have transitioned into our first three sub-funds and we are making over £1 million per annum of fund manager fee savings. But more than that we, London CIV and our colleagues across London, have delivered one of the biggest, if not the biggest, local government collaborative ventures ever!
We still have a long way to go to build out the investment opportunities and to achieve our ambition of London CIV being the investment vehicle of choice for local authority pension funds, through successful collaboration and delivery of compelling performance, but I think for all of us to take a moment to draw breath and pat ourselves on the back is more than justified.