The £5.8bn Avon Pension Fund has confirmed its decision to join Local Pensions Partnership Investments (LPPI) as the Local Government Pension Scheme pooling reshuffle continues.
It is the third fund this week to announce its preferred new home, after the government earlier this year ordered the ACCESS and Brunel pools to be closed down.
Avon also becomes the second Brunel fund to opt for LPPI, following Devon’s decision to move there earlier in the week, as reported by LAPF Investments.
In a press release, the pension fund said it had reviewed its options with the support of KPMG, which considered factors including investment strength, cost savings, culture, and alignment with government goals.
Councillor Toby Simon, chair of the Avon Pension Fund, said: “LPPI have impressed us throughout this process with their strong investment and advisory capabilities and commitments to their new shareholders.
“We see significant opportunities for the new, larger pool to enhance purchasing power, deliver cost efficiencies and unlock access to new investment opportunities.”
The fund will now confirm this decision in principle with the government ahead of the 30 September deadline.
Following this week’s decisions, if they are ratified by other partner funds, LPPI stands to grow its assets under management to more than £34bn.
Pensions Expert reported earlier this week that the pool had explored the prospect of taking on Brunel’s business, which includes an FCA-authorised management company and investment fund range. An LPPI spokesperson declined to comment on “speculation”.
A version of this article first appeared on Pensions Expert’s sister title LAPF Investments.
