The c.£215 million mandate, which will be invested across LGIM’s range of index funds, will benefit from a commercial agreement with the London CIV on behalf of the London boroughs.
LGIM has more than 30 years of experience in index fund management and currently manages £300 billion1 in traditional market-cap weighted funds.
Councillor Corthorne, Chair of the Pension Committee at the £810m London Borough of Hillingdon Pension Fund, said: “The council is committed to reducing costs while maintaining investment performance to meet future benefits for our members. We have chosen LGIM because of its expertise in index-tracking fund management and its broad range of cost-effective pooled funds, which will enable us to take a step closer towards the Government’s pooling agenda with management and reporting of the mandate to eventually be carried out by the pool.”
Adam Willis, Head of Index & Multi-Asset Distribution at LGIM, said: “Our understanding of the specific challenges facing the local authority sector means we are able to use our scale and expertise to offer low cost investment solutions that meet our clients’ needs. We are committed to supporting the Local Government Pension Scheme (LGPS) with asset pooling, which is aimed at delivering the best outcome at retirement for current and future pensioners. We look forward to working with the London Borough of Hillingdon and helping it to deliver on its long-term investment objectives.”
LGIM is the largest manager of LGPS mandates in the UK, managing £44 billion of assets3. In November 2015, LGIM announced it had been appointed to manage a £6.5 billion pooled passive mandate by a group of seven schemes comprising Cheshire, Leicestershire, Nottinghamshire, Shropshire, Staffordshire, Warwickshire and Worcestershire
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