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The Wales Pension Partnership, one of eight Local Government Pension Scheme pools, has reappointed Waystone Management (UK) as its pool operator following a procurement process.
The “rigorous” process resulting in Waystone’s reappointment was run by advisers Hymans Robertson and law firm Burges Salmon, WPP said. As at March, the eight constituent authorities of the pool held about £13bn through the operator in various investment strategies.
“As the host authority for WPP we are delighted that Waystone was successful again and look forward to continue working with the team,” said Chris Moore, director of corporate services at Carmarthenshire County Council.
Rachel Wheeler, global product head of regulated fund solutions at Waystone, said: “We have a long and successful history of collaboration with the WPP, and we’re excited to explore new opportunities for expanding our partnership in the years to come.”
Waystone will continue to operate an authorised contractual scheme – a type of tax-efficient UK collective investment vehicle – for WPP, with 10 sub-funds across equities and fixed income, while Russell Investments handles investments and underlying managers.
For its first ACS contract, Wales had appointed asset servicing firm Link Fund Solutions in January 2018, which was bought by Waystone Group last autumn. Link had been involved in the Woodford debacle; in April this year, the Financial Conduct Authority said Link had “failed to act with due skill, care and diligence in its management of the Woodford Equity Income Fund”. The firm has started paying compensation to investors in a redress scheme of up to £230m.
Wales is one of two LGPS pools that have outsourced their ACS operator and investment provider. The £34bn Access pool is currently selecting its ACS operator, having hired Link, now Waystone, in March 2018 for seven years.
Wales Pension Partnership includes the pension funds of Cardiff and Vale of Glamorgan, City and County of Swansea, Clwyd, Dyfed, Greater Gwent (Torfaen), Gwynedd, Powys and Rhondda Cynon Taf.
Under plans put forward by the previous government, LGPS pools would need to reach £200bn by 2040, potentially forcing some to merge, which could also prompt a rethink of operating models. Of the remaining six pools, five are their own Financial Conduct Authority-regulated companies, while one pool operates through a joint committee.
Could some operators change if the pools have to merge?
