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UK’s first local government Collective Investment Vehicle fully authorised

  • By Jim Ranger

London CIV, the collaborative venture established by London Councils on behalf of the 32 London boroughs and the City of London Corporation has become the first such scheme to be fully authorised in the UK by the Financial Conduct Authority.

The collective investment vehicle, an Authorised Contractual Scheme (ACS) and the first of its kind for the UK pensions industry, will enable the London authorities to achieve unprecedented economies of scale and potentially enable access to opportunities for investment in alternative asset classes that may not have previously been easily achievable for individual funds.

Designed to be an investment route for members’ Local Government Pension Scheme (LGPS) assets, it is also a proactive response to the government’s LGPS pooling agenda as announced in the Budget and reinforced by George Osborne in his party conference speech.

“London local government has been leading the way in developing proposals for greater collaboration across the Local Government Pension Scheme,” said Mayor Jules Pipe, Chair of London Councils. “I am extremely proud of what has been achieved by everyone involved in setting up London CIV, which is already delivering significant financial benefits for the boroughs, the pension scheme members and local tax payers.”

Hugh Grover, Chief Executive of London CIV, said: “It has been a real privilege to be leading this ground-breaking project on behalf of the London boroughs. We are now focussed on opening our first sub-fund before Christmas, an active global equities fund managed by AllianzGI, and will open a further eight sub-funds by the end of this financial year, giving us around £6 billion of assets under management. Overall the boroughs have some £25 billion of assets and throughout next year and beyond we will be opening more sub-funds covering the full spectrum of asset classes in response to the boroughs needs.”

London CIV is authorised by the FCA as a full scope AIFM with permission to operate a UK Authorised Contractual Scheme fund as a QIS.

An ACS is a Financial Conduct Authority regulated tax-transparent fund domiciled in the UK. Enacted into UK regulation in July 2013, the ACS aligns the UK investment funds regime with other European jurisdictions offering tax-transparent pooling vehicles. It is exempt from income tax and chargeable gains and enables investors to access their appropriate tax rate.

ENDS

Notes to editors:

About London CIV

London LGPS CIV Ltd. (London CIV) is authorised by the UK Financial Conduct Authority as a full scope AIFM with permission to operate a UK Authorised Contractual Scheme fund as a QIS.

Established primarily for the 33 Local Government Pension Schemes (LGPS) administered by the 32 London Boroughs and the City of London Corporation, but open to the rest of the LGPS, London CIV aims to deliver significant cashable and non-cashable benefits for its members.

About Authorised Contractual Schemes

An ACS is a Financial Conduct Authority regulated tax-transparent fund domiciled in the UK. Enacted into UK regulation in July 2013, the ACS aligns the UK investment funds regime with other European jurisdictions offering tax-transparent pooling vehicles. It is exempt from income tax and chargeable gains and enables investors to access their appropriate tax rate.

About London Councils

London Councils represents London boroughs and the City of London. It is a cross-party organisation that works on behalf of all of its member authorities regardless of political persuasion.

London Councils makes the case to government, the Mayor and others to get the best deal for Londoners and to ensure that our member authorities have the resources, freedoms and powers to do the best possible job for their residents and local businesses. It also runs a number of direct services for member authorities including the Freedom Pass, Taxicard and Health Emergency Badge as well as an independent parking appeals service and a pan-London grants programme for voluntary organisations.

www.londoncouncils.gov.uk

Disclaimer

Issued by London LGPS CIV Limited, which is authorised and regulated by the Financial Conduct Authority number 710618. London CIV is the trading name of London LGPS CIV Limited. This material is for limited distribution and is issued by London CIV and no other person should rely upon the information contained within it. This document is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution would be unlawful under the laws governing the offer of units in collective investment undertakings. Any distribution, by whatever means, of this document and related material to persons who are not eligible under the relevant laws governing the offer of units in collective investment undertakings is strictly prohibited. Any research or information in this document has been undertaken and may have been acted on by London CIV for its own purpose. The results of such research and information are being made available only incidentally. The data used may be derived from various sources, and assumed to be correct and reliable, but it has not been independently verified; its accuracy or completeness is not guaranteed and no liability is assumed for any direct or consequential losses arising from its use. The views expressed do not constitute investment or any other advice and are subject to change and no assurances are made as to their accuracy. Past performance is not a guide to future performance. The value of investments and the income from them may go down as well as up and you may not get back the amount you invest. Changes in the rates of exchange between currencies may cause the value of investments to diminish or increase. Fluctuation may be particularly marked in the case of a higher volatility fund and the value of an investment may fall suddenly and substantially. Levels and basis of taxation may change from time to time.  Subject to the express requirements of any other agreement, we will not provide notice of any changes to our personnel, structure, policies, process, objectives or, without limitation, any other matter contained in this document. No part of this material may be reproduced, stored in retrieval system or transmitted in any form or by any means, electronic, mechanical, recording or otherwise, without the prior written consent of London CIV. London LGPS CIV Ltd. is a private limited company, registered in England and Wales, registered number 9136445. Registered office: 70 Great Bridgewater Street, Manchester M1 5ES.