The Local Government Pension Scheme's (LGPS's) Access pool has appointed UBS Asset Management to run the consolidated passive mandates for 11 administrating authorities.
The brief includes passive briefs across both equity and fixed income and uses a range of indices, including market cap, RAFI and other indices.
The pool did not disclose the price paid to UBS for managing the mandates but explained the asset manager had been chosen in a process that focussed 50% on price and 50% on quality and service factors. It also said the consolidation has resulted in estimated savings of £5m per annum.
Access joint committee chairman councillor Andrew Reid said: "I am delighted we have started the process of pooling early with some tangible, long term savings and look forward to a smooth transition to UBS."
UBS Asset Management head of UK institutional Malcolm Gordon said: "We are delighted and extremely proud to be working with Access on their combined passive mandate. Their decision to partner with us is a great endorsement of UBS Asset Management's long-established world-class indexing capability. It also reflects our deep heritage with LGPS and our long term commitment to servicing this sector. We look forward to building our relationship with the Access pool over the coming years."
Funds for the mandate are expected to transfer by March 2018, which means a substantial portion of Access assets will be pooled in advance of the government's target date.
The contract is for an initial period to 31 March 2028, with a possible five year extension and additional extension to 13 November 2036.
Access worked with the National LGPS Frameworks team to set up a OJEU (Official Journal of the European Union) compliant framework and secure these significant savings through collective procurement.
The National LGPS Frameworks are a not for profit service "by the LGPS for the LGPS", which allows all LGPS funds access to specialist services via OJEU compliant competitive procurement framework vehicles.
This framework - for "multi provider passive investment managers" - is now live and can be used by any LGPS fund.
LGPS Access is made up of 11 LGPS administrating authorities, including Cambridgeshire County Council; East Sussex County Council; Essex County Council; Hampshire County Council; Hertfordshire County Council; Isle of Wight Council; Kent County Council; Norfolk County Council; Northamptonshire County Council; Suffolk County Council; and West Sussex County Council.
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