The Wales Pension Partnership has appointed Russell Investments for investment management and investment advisory services and Link Asset Services as an operator to establish and run a collective investment vehicle.
Individual Local Government Pension Scheme funds are expected to start transferring liquid assets into their pools from April 2018.
The Wales Pension Partnership comprises the eight Welsh councils, which have combined assets under management of approximately £15bn.
Link Asset Services has been appointed as operator, with the task of establishing and running a collective investment vehicle for the WPP. It is partnering with Russell Investments, which will provide investment management services and advisory services to assist in establishing the investment vehicles.
This will include advising Link Asset Services and the WPP on portfolio construction, which includes manager selection for the total pool of assets, excluding passive equity.
Link Asset Services will also work with Russell Investments, where applicable, to further reduce costs through a multi-manager structure, portfolio overlays, currency management and transition management.
Chris Moore, director of corporate services at Carmarthenshire County Council, which is host authority for the WPP, said: “The appointment of Link Asset Services, in partnership with Russell Investments, is a significant milestone in the establishment of a £15bn investment pool for the LGPS funds in Wales. We look forward to working together to deliver the benefits of investment pooling for the LGPS in Wales.”
