London LGPS CIV Ltd (‘London CIV’), established in 2015 by London Local Authorities manages London Local Government Pension Scheme (‘LGPS’) assets. London CIV is one of eight U.K. LGPS asset pooling companies. The London Boroughs and City of London who are the 32 Shareholders, are also its clients (‘Client Funds’). London CIV’s purpose as a pooling company, working in collaboration with our Client Funds, is to achieve added value through economies of scale, greater efficiency and improved performance. The current target for London CIV is to pool 75% of London LGPS total assets in the short-term, which will help in maximising value for our clients and for our broader stakeholders.
London CIV is authorised and regulated by the Financial Conduct Authority (‘FCA’). We are in our sixth year of operation. We have achieved the pooling of approximately 56% of our clients’ assets: assets in active management via 16 funds were £10.0bn; with a further £10.8bn held in passive funds. As at 30th September 2020, there is an estimated £17bn in unpooled assets that are yet to be invested in new or existing funds with us. The Ministry for Housing, Communities and Local Government (‘MHCLG’) has mandated pooling via pooling companies for the LGPS. London CIV operates in line with MHCLG policy and regulations.
Combined the LGPS is the sixth largest funded pension scheme globally with assets of over £270bn (source: Nov 2020 HM Treasury: The Balance Sheet Review Report). London CIV is the largest by number of clients with 37% of the combined English and Welsh LGPS (32 out of 86 LGPS in England & Wales – source: Nov 2020 HM Treasury: The Balance Sheet Review Report), but with less than 15% of the combined English & Welsh LGPS assets. The pooling together of London LGPS assets means we provide our Client Funds significant impact as investors on a wide range of stakeholders.
As a responsible investor London CIV is a signatory to UNPRI, TCFD, Climate Action 100+ and Pensions for Purpose.