U.K. pools gaining critical mass, and investment choices
U.K. investment pools formed seven years ago to streamline the investment process for local government pension funds are now building up sizable assets, as well as facing challenges that range from diversification to climate change reporting.
Local government pension schemes, or LGPS, “are still moving funds and the pools are still building up asset classes,” said Colin Cartwright, an Aon PLC partner in London who consults with both LGPS and corporate clients. He expects to see more funds transferred into pools, and more asset class growth.
While many LGPS assets are managed by third-party managers, “the pool plays a really important role,” said Philip Pearson, London-based head of LGPS investment for financial consultant Hymans Robertson LLP, which consults with the LGPS funds.
“Pools are driven very much by what the partner funds want to achieve,” he said. Local government pension funds have “quite a lot of commonality, and I think (the appeal of pooling) is going to increase. Investment markets these days are so large and diverse that no one (pension fund) can provide everything,” Mr. Pearson said.
Read more @Pionline
478 views
