Nick Reeve looks back at the LGPS Pooling Symposium at a crucial time for local authority pension schemes and administering authorities.
DG Publishing hosted its annual LGPS Pooling Symposium this week at The Belfry in the West Midlands, and it could not have come at a more crucial time.
Representatives of the ACCESS and Brunel pools were in attendance – we wish them and their teams well for the future, whatever it holds – and the government’s plans for the next phase of pooling were a key topic of discussion throughout.
The Treasury and the Ministry for Housing, Communities and Local Government must explain their decision-making regarding the intended closure of ACCESS and Brunel. This is particularly important given how much the government wants pools to do. These organisations require a stable environment in which to hire staff and establish long-term investment offerings and other services.
One of the most eye-opening sessions was hosted by Chris Sier, a long-time champion of cost transparency and chief executive of ClearGlass. His data shows that LGPS pools have delivered substantial fee savings across multiple asset classes, one of the main aims of pooling.
A more recent addition to the aims of pools is the provision of strategic advice, but this may not be as straightforward as saving on investment costs. Border to Coast made a key hire this week to build out this service, while the London CIV has also set up a series of ancillary services for its partner funds.
However, the strategic advice LGPS funds currently receive typically comes from firms with significant resources and a long track record. Crucially, as one panellist pointed out, trust is also key. Establishing this in a short timeframe will be difficult.
Elsewhere this week, there was a significant development in the nascent collective defined contribution (CDC) sector as TPT Retirement Solutions announced its intention to launch a CDC pension scheme by the end of next year.
We expect more providers to follow with their own plans for CDC schemes. The pensions sector has been crying out for more innovation for years, and it is great to see that finally happening.
Nick Reeve is editor of Pensions Expert.
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