Bfinance has been appointed to provide investment advice for ten south west Local Government Pension Scheme (LGPS) funds which make up the Brunel Pension Partnership (BPP).
Bfinance will help BPP set up the Brunel Company to manage the assets of the pool which must authorised by the Financial Conduct Authority (FCA). The government intends pooling of LGPS investments to begin in April 2018.
The firm secured the mandate through a tender involving other investment consultants.
The Environment Agency Pension Fund, and funds for Avon, Buckinghamshire, Cornwall, Devon, Dorset, Gloucestershire, Oxfordshire, Somerset and Wiltshire are all members of BPP.
BPP's Matthew Trebilcock, who is also pensions investment manager at Cornwall Council said he was "confident" Bfinance's expertise would provide a "thorough" analysis regarding investments.
There are 22 proposed portfolios that will be made available to the funds to which BFinance will provide advice.
It will also review the specifications for the portfolios, including structure, fee levels, and projected savings.
It is estimated these measures will generate net savings of around £16m annually for all the funds in the pool with potential to increase savings to £70m per year over the long term.
Bfinance head of client consulting for UK & Ireland Sam Gervaise-Jones said there is an opportunity for consultants to win business in the public sector: "While the landscape for consultants has changed significantly since UK public pensions started pooling their assets, we believe there are significant opportunities for investment consultants to be
involved. There remain a lot of niche areas that will require the investment expertise of consultants depending on the implementation route that is chosen."
The LGPS funds submitted their final plans for pooling to the government in July, and the Department for Communities and Local Government is expected to response later this year.
While the LGPS reforms are bold they have proved controversial with trade unions such as Unison.
The government has also come under fire for a delay in finalising major changes to the LGPS investment regulations, with funds warning it is already causing problems for pooling.
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