Brunel funds want to move as one
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Nine funds in Brunel Pension Partnership are yet to reveal which asset pool they will switch to, but a group of them plans to move together. Last week, seven funds from Access moved to Border to Coast and four funds managing £22bn to LGPS Central.
At a recent meeting, Devon’s pension committee members were informed that the Brunel Client Group, comprising the head of pensions or investments or equivalent at each local authority, has “come to the view that the Brunel client funds should work together, with the intention that all or the majority of Brunel clients would move together to the same pool”, which Devon’s pensions committee agreed with in principle.
However, the council also wants to make representations to Devon MPs to ask them to oppose the government’s conclusion regarding the future pooling arrangements of the Devon Pension Fund and seek funding for the additional costs that would be involved in changing pool.
Councillors expressed frustration at the government’s decision to refuse the go-ahead for Brunel, “particularly given that Brunel has historically been considered a well-performing pool, and that this was being mandated to the fund”. They considered a legal challenge but ultimately decided against mounting one.
In Gloucestershire, council officers advised the pensions committee that no rationale had been given as to what criteria the Brunel Pension Partnership had not met. The fund is now placing pooling on the risk register as the chair felt it was “a substantial risk” to the fund.
The Brunel funds yet to announce their new pooling partner are:
At a recent meeting, Devon’s pension committee members were informed that the Brunel Client Group, comprising the head of pensions or investments or equivalent at each local authority, has “come to the view that the Brunel client funds should work together, with the intention that all or the majority of Brunel clients would move together to the same pool”, which Devon’s pensions committee agreed with in principle.
However, the council also wants to make representations to Devon MPs to ask them to oppose the government’s conclusion regarding the future pooling arrangements of the Devon Pension Fund and seek funding for the additional costs that would be involved in changing pool.
Councillors expressed frustration at the government’s decision to refuse the go-ahead for Brunel, “particularly given that Brunel has historically been considered a well-performing pool, and that this was being mandated to the fund”. They considered a legal challenge but ultimately decided against mounting one.
In Gloucestershire, council officers advised the pensions committee that no rationale had been given as to what criteria the Brunel Pension Partnership had not met. The fund is now placing pooling on the risk register as the chair felt it was “a substantial risk” to the fund.
The Brunel funds yet to announce their new pooling partner are:
- Avon;
- Buckinghamshire;
- Cornwall;
- Devon;
- Dorset;
- Environment Agency;
- Gloucestershire;
- Oxfordshire;
- and Somerset.
Funds with £22bn move to LGPS Central
Last week, the pension funds for Hampshire, the Isle of Wight, Norfolk, and Suffolk in the Access investment pool, which is having to wind down on government orders along with Brunel, said they will be joining LGPS Central. This means that all of the funds in Access have now announced where they will move, after seven other funds revealed they are in talks to join Border to Coast just a few days earlier.
“The openness and positivity displayed by LGPS Central Ltd throughout the selection process is a key demonstration of the pool’s values. We believe LGPS Central Ltd is equipped to deliver the requirements of the government’s ‘Fit for the Future’ agenda and look forward to working collaboratively to deliver positive outcomes for LGPS scheme members,” said cllr Greg Peck, chair of the Norfolk pensions committee.
Andrew Lowe, who is the section 151 officer of Hampshire County Council, added: “Among the many strengths we identified, the collaborative approach taken by the founding authorities in establishing and operating the pool was particularly impressive. As authorities on the Fast-Track Devolution programme, we are pleased to be aligned with our respective local authority partners helping to deliver the Government’s ambition for both devolution and pooling.”
Last month, Wiltshire Pension Fund, currently with Brunel Pension Partnership, also said it has chosen LGPS Central as its preferred pooling partner. LGPS Central now has 13 partner funds, up from eight, while Border to Coast has 18, up from 11.
Andrew Lowe, who is the section 151 officer of Hampshire County Council, added: “Among the many strengths we identified, the collaborative approach taken by the founding authorities in establishing and operating the pool was particularly impressive. As authorities on the Fast-Track Devolution programme, we are pleased to be aligned with our respective local authority partners helping to deliver the Government’s ambition for both devolution and pooling.”
Last month, Wiltshire Pension Fund, currently with Brunel Pension Partnership, also said it has chosen LGPS Central as its preferred pooling partner. LGPS Central now has 13 partner funds, up from eight, while Border to Coast has 18, up from 11.
