The LGPS Access local authority pool has received approval from the Financial Conduct Authority (FCA) for its global equity sub-fund.
Around £1.6bn of the £40bn pool's assets will be invested in the fund when it is launched in October this year, with immediate savings anticipated at £1.5m per year, growing to £1.9m over time.
Three of the 11 partner LGPS funds will initially invest in the sub-fund, which will be run by Link Fund Solutions, the operator of the LF Access Pool authorised contractual scheme (ACS), which has also recently received FCA approval.
LGPS Access anticipates further sub-funds will be launched in early 2019, while around £11bn of passive assets have already been pooled under a single commercial relationship with UBS.
The fund's joint committee chairman, councillor Andrew Reid, said: "This has been a significant first year with the appointment of the passive managers (savings of £5m per annum), the appointment of Link as the operator and, now, the launch of the ACS and the first sub-fund."
Link Fund Solutions managing director Peter Hugh-Smith added: "Link Fund Solutions and Access have built a collaborative working partnership as we have worked towards the authorisation of the first LF Access fund."
He added the firm "looks forward" to launching this and further sub-funds to deliver "material cost savings to all participating authorities".
The pool comprises the pension funds of Cambridgeshire, East Sussex, Essex, Hampshire, Hertfordshire, Isle of Wight, Kent, Norfolk, Northamptonshire, Suffolk, and West Sussex county councils.
Essex County Council was yesterday (23 August) confirmed as the host authority for the pool's support unit, and will soon begin advertising for a programme director and a contract manager. The unit will consist of a "small number of permanent staff", with technical lead roles drawn from LGPS officers at the partner funds.
The government will set up an infrastructure bank to support investment and to co-invest alongside investors including pension funds.
The Retail Prices Index (RPI) will be reformed and aligned with the housing cost-based version of the Consumer Prices Index, known as CPIH, by 2030, the Treasury has confirmed.
Estatee agent denies a shareholder’s absence from voting is an issue, finds Minerva Analytics.
In this live blog, Professional Pensions' sister title Investment Week collates all the breaking market news, analysis and opinion on equity, bond and currency movements as well as the impact of trade wars, tightening monetary policy and the Brexit negotiations....
Attractive valuations and prospects for economic recovery support small-caps