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Seven Local Government Pension Scheme funds from the Access investment pool intend to join Border to Coast, as funds in Access and Brunel have until the end of next month to find new homes for their assets. The news comes after Brunel’s Wiltshire Pension Fund became the first to choose a new pool last month.
Border to Coast Pensions Partnership said on Monday that the pension funds of Cambridgeshire, East Sussex, Essex, Hertfordshire, Kent, Northamptonshire and West Sussex, who together look after £45bn, “have entered exclusive discussions on joining the pool”.
The 21 funds currently in Access and Brunel Pension Partnership have until the end of September to switch assets to a new pool, as central government decided earlier this year – ahead of the outcome of its ‘Fit for the future’ consultation – that the former two pools, the only ones not in Labour-supporting areas, did not meet its pooling criteria. The government is seemingly trying to obtain greater control over LGPS investment by making the investment pools the ones to also give principal investment advice to funds.
Cllr Jeremy Hunt from West Sussex Pension Fund spoke on behalf of the seven funds, saying: “The Border to Coast Pensions Partnership offers a strong governance framework and a collaborative approach. Border to Coast’s proven track record gives us confidence in a smooth transition and continued excellence in service delivery.”
Hunt also thanked the LGPS community for the positive engagement throughout this process.
George Jabbour, who chairs Border to Coast’s joint committee, said: “We’re really pleased that these funds have signalled their intent to work with us to form a new partnership, as they share our values of collaboration, with a focus on openness. Together, we believe we can harness our combined strengths to make a difference for the LGPS.”
The chief executive of the Leeds-based pool, Rachel Elwell, said she is delighted that these funds have selected Border to Coast: "In coming together, we can build on the collective experience and capabilities of all funds to not only strengthen our collective voice, but enhance our combined ability to deliver robust, sustainable, and cost-effective outcomes for partner funds.”
Border to Coast currently has 11 funds with a combined £65bn – Bedfordshire, Cumbria, Durham, East Riding, Lincolnshire, North Yorkshire, South Yorkshire, Surrey, Teesside, Tyne & Wear and Warwickshire.
Wiltshire chooses LGPS Central
Last month, Wiltshire Pension Fund, currently investing with Brunel, said it has chosen LGPS Central as its preferred pooling partner.
Cllr George Simmonds, chair of the Pension Fund Committee, said: “In this time of change we have been intentional in our pursuit of a partner that not only demonstrates a strong customer focus but also aligns culturally with the values of the Wiltshire Pension Fund. The Committee is confident that a move to LGPS Central would fulfil these aspirations and support us in meeting the government's pooling requirements.”
Head of Wiltshire Pension Fund, Jennifer Devine, added: “During our selection process, the openness demonstrated by the senior leadership team at LGPS Central gave us a high level of conviction that our voice would be heard, providing the best prospect of being able to collaborate and help drive positive outcomes in the future.”
The funds yet to announce their new pooling partner are, from Access:
Isle of Wight;
Norfolk;
Suffolk; and
Hampshire.
and from Brunel:
Avon;
Buckinghamshire;
Cornwall;
Devon;
Dorset;
Environment Agency;
Gloucestershire;
Oxfordshire;
and Somerset.
Where do you expect the remaining funds to move their assets?
