Public Pensions Agree to Investment Partnership

Two of the largest UK public sector pensions have agreed a partnership that would see more £10 billion ($15.6 billion) pooled and potentially co-managed in-house.

The Lancashire County Pension Fund and the London Pensions Fund Authority (LPFA) have announced the first steps in what they call a “ground-breaking asset and liability management partnership”.

The funds, which are based on either ends of England, said they would create an investment entity registered with the Financial Conduct Authority. This would mean it could take investment decisions on behalf of their pension fund members without using a consultant or third-party manager.

“The partnership will build on existing expertise and increase co-operation and collaboration between the pension funds,” a statement released by the funds said. “It will put into practice the views expressed by both pension funds in their responses to central government on the reform of the Local Government Pension Scheme.”

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These responses focused upon a move by central government to push public and local authority pension funds to invest purely in passively managed vehicles.

A spokesman for the Lancashire pension said the partnership believed this would be a step backwards as both funds had found benefits in actively managing assets.

In July, Sir Merrick Cockell, deputy chair of the LPFA, was quoted as saying everyone he had talked to thought the move was “mad”.

In October, the London fund appointed a new CIO to replace Alex Gracian who left six months earlier. LPFA CEO Susan Martin has announced she intends to build up an internal team to manage its £5 billion in in-house and gathered assets.

The Lancashire pension has been a runner up at CIO’s European Innovation Awards for the past two years.

Helen Roberts The investment policy lead adviser at the UK’s National Association of Pension Funds (NAPF) is to leave the organisation before the end of the month, CIO has learned.

Helen Roberts, who joined the NAPF in January 2013, is to return to her financial roots and join fixed income manager ECM Asset Management.

ECM, which manages around $8 billion, is part of the larger US institution Wells Fargo. According to its website, ECM “specialises in the management of duration exposure and offers many strategies with very short duration”.

A spokesperson for the NAPF told CIO it is recruiting to fill Roberts’ position and thanked her for her “hard work and contribution” to the organisation and its members.

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Roberts joined the NAPF from F&C Asset Management, where she had been head of government bonds for more than 13 years. Previously, she had been head of UK gilt and inflation-linked bonds at Hermes Investment Management.

At ECM, it is understood she is to take a more client-facing role and use her experience working with pension funds at the NAPF to help shape investment strategies.

She will begin the role in January.

Wells Fargo declined to comment.