• First contract secured since recent launch of JLT offering to LGPS’s
• Expected savings of £13m per year by 2021 for the pool
The new mandates were won following the recent launch of JLT and Alpha FMC’s joint offering to deliver the first end-to-end LGPS asset pooling service.
The net savings for the BPP are expected to reach £13m per year by 2021, potentially rising to £70m per year in the longer term through increased economies of scale and improved investment performance.
The BPP is one of eight LGPS asset pools formed out of 89 LGPS’ as a result of the Government’s July 2015 budget announcement. The aim is to achieve lower investment management costs and more effective management of the investment assets. In addition, BPP will look to make savings through its collective buying power.
BPP is to be structured as an FCA-regulated company, pooling investment assets from ten LGPS Funds, including The Environment Agency Pension Fund, and the Local Government Funds of Avon, Buckinghamshire, Cornwall, Devon, Dorset, Gloucestershire, Oxfordshire, Somerset and Wiltshire. The BPP will be responsible for selecting fund managers and structuring portfolios. Initially, BPP intends to create 22 portfolios in order to meet the needs of the Funds.
The investment advisory team will be led by JLT’s Senior Consultant, Andrien Meyers, and Alpha FMC’s Director and Head of Pensions Practice, Jon Benson. Andrien previously worked at the Lambeth Pension Scheme, and contributed to the formation of the £25bn London CIV (London LGPS pool). Jon, meanwhile, has over a decade of experience working with some of the largest administrators and investment managers in the industry.
Dawn Turner, Chief Pensions Officer, EAPF and Project Executive for BPP, said: “Developing the business case for the Brunel Pension Partnership proposed asset pool requires significant resource, expertise, experience and objectivity and JLT brings all of that to our project. Experts are invaluable when building anything for the first time, we are therefore also delighted to be working with Alpha FMC whose wealth of experience will ensure the partnership is best prepared to secure FCA authorisation.”
Andrien Meyers, Senior Consultant, JLT Employee Benefits, said: “We are excited to be supporting the Brunel Pension Partnership. Our LGPS investment consulting team comprises of not just traditional consultants, but more importantly a combination of LGPS and asset pooling experts. Working collaboratively with Alpha FMC, we are well positioned to ensure that BPP’s Pooling Proposal is produced within the designated timescales.”
Jon Benson, Director and Head of the Pensions Practice at Alpha FMC, said: “We are thrilled to have been appointed by the Brunel Pension Partnership to support their work. This is important work for Alpha and the industry as the local authorities build propositions for the pooling of assets. We are bringing our expert knowledge of transformational change within asset managers and asset owners to the BPP. Furthermore, our deep understanding of, and experience of working with and directly for, the FCA puts us in a unique position to help the BPP ensure that the best application is made.”
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