UK pension funds consolidate asset pooling strategy
08 September 2016 London
Image: Shutterstock
The Brunel Pension Partnership, an investment pooling project for 10 local government pension funds across South West England, has pushed ahead with plans for closers ties with the appointment of bfinance as the group’s investment advisor.
The partnership boasts roughly £23 billion in combined assets and aims to boost this total through an estimated net savings worth £16 million annually, and a potential to increase savings to £70 million a year by sharing investment costs, according to bfinance.
Bfinance will provide independent advice on the 22 proposed portfolios that will be made available to the funds, as well as review the specifications for the portfolios, including structure, fee levels, and projected savings.
According to bfinance, it has previously worked with more than 40 of the UK's local government pension funds. It has also advised over 70 public pension funds internationally.
Brunel Pension Partnership's long-term asset management plan involves the formation of the Brunel Company, a Financial Conduct Authority-authorised business that will be responsible for managing the pooled assets.
Matthew Trebilcock of Brunel Pension Partnership said: “We welcome our partnership with bfinance and are confident that their specialist expertise and experience in the competitive landscape of pooling funds will provide us with a thorough and tailored cost benefit analysis of the proposed investment portfolios that the Brunel Pension Partnership have designed for the ten funds that are part of the project to ensure that it is the most appropriate approach for the Partnership.”
The Brunel Pension Partnership was set up last year following advice from the UK government that all 89 of the UK's local government pension scheme funds should pool their assets as a cost saving strategy.
The partnership boasts roughly £23 billion in combined assets and aims to boost this total through an estimated net savings worth £16 million annually, and a potential to increase savings to £70 million a year by sharing investment costs, according to bfinance.
Bfinance will provide independent advice on the 22 proposed portfolios that will be made available to the funds, as well as review the specifications for the portfolios, including structure, fee levels, and projected savings.
According to bfinance, it has previously worked with more than 40 of the UK's local government pension funds. It has also advised over 70 public pension funds internationally.
Brunel Pension Partnership's long-term asset management plan involves the formation of the Brunel Company, a Financial Conduct Authority-authorised business that will be responsible for managing the pooled assets.
Matthew Trebilcock of Brunel Pension Partnership said: “We welcome our partnership with bfinance and are confident that their specialist expertise and experience in the competitive landscape of pooling funds will provide us with a thorough and tailored cost benefit analysis of the proposed investment portfolios that the Brunel Pension Partnership have designed for the ten funds that are part of the project to ensure that it is the most appropriate approach for the Partnership.”
The Brunel Pension Partnership was set up last year following advice from the UK government that all 89 of the UK's local government pension scheme funds should pool their assets as a cost saving strategy.
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