Agenda item

20 February 2014

London Councils: London Local Government Pension Scheme (LGPS) Collective Investment Vehicle

Following detailed work which has been undertaken by London Councils on the potential for more collaboration between a number of London boroughs and the City of London Corporation on the management and investment of pension funds, we have considered and agreed a number of recommendations relating to the establishment of a London Local Government Pensions Scheme (LGPS) Collective Investment Vehicle. The recommendations are also supported by your Finance Committee.

London Councils appointed expert legal and financial services advisors to develop a robust business case and a formal proposal. London Councils Leaders’ Committee has since considered the outcome of this and agreed to make recommendations to all London boroughs (and the City Corporation) to proceed with establishing an Authorised Contractual Scheme (ACS), and the ACS Operator, which is the company that would manage it. It should be noted that the proposals outlined are based on voluntary participation, and the decision as to whether to invest in the ACS would be made later in the year. It should be noted that nothing proposed in this matter locks the City Corporation into any level of commitment to invest at this point.

We submit a printed and circulated report thereon recommending that the Court supports the next steps in the establishment of a London LGPS Collective Vehicle. All London local authorities are being asked to respond by 14 April 2014 or before the day of the local government elections (22 May 2014).

B) London Councils: London Local Government Pension Scheme (LGPS) Collective Investment Vehicle

Following detailed work which has been undertaken by London Councils on the potential for more collaboration between a number of London boroughs and the City of London Corporation on the management and investment of pension funds, we have considered and agreed a number of recommendations relating to the establishment of a London Local Government Pensions Scheme (LGPS) Collective Investment Vehicle. The recommendations are also supported by your Finance Committee.

London Councils appointed expert legal and financial services advisors to develop a robust business case and a formal proposal. London Councils Leaders’ Committee has since considered the outcome of this and agreed to make recommendations to all London boroughs (and the City Corporation) to proceed with establishing an Authorised Contractual Scheme (ACS), and the ACS Operator, which is the company that would manage it. It should be noted that the proposals outlined are based on voluntary participation, and the decision as to whether to invest in the ACS would be made later in the year. It should be noted that nothing proposed in this matter locks the City Corporation into any level of commitment to invest at this point.

We submit a printed and circulated report thereon recommending that the Court supports the next steps in the establishment of a London LGPS Collective Vehicle. All London local authorities are being asked to respond by 14 April 2014 or before the day of the local government elections (22 May 2014).

Read and agreed to.