London CIV, the collaborative venture established to pool investments of 33 London local authority pension funds is celebrating a year of success.
Originally set up on a voluntary basis to enable the capital’s pension funds to work more closely together, it led the way for a much wider pooling of Local Government Pension Schemes across England and Wales under direction from central government and has reached its 12-month milestone.
Hugh Grover, chief executive of London CIV, said: “When it was created, London CIV was the first of its kind. The aim was to unlock potential for councils to access economies of scale and opportunities for investment that might not have been achievable for individual funds.
“We now have five sub-funds launched with £2.5 billion of assets under management. By the end of this financial year we aim to open another four funds taking assets under management close to £4 billion, delivering net annualised fee savings of more than £3.5 million.
“Being at the leading edge of pension fund pooling and delivering this scale of progress since launch is an enormous achievement by the London CIV team and our many colleagues across the London authorities, and something we should all be proud of.”
Cllr Claire Kober OBE, chair of London Councils, said: “When the concept of the CIV was first approved by London Councils’ Leaders’ Committee in 2014 some were undoubtedly sceptical that it would ever be delivered. Now, a year after launch and with every London authority involved, it’s a real example of pan-London collaboration at its best. I congratulate everyone on this remarkable achievement, which is already delivering benefits for the authorities, local tax payers and our pension fund members.”
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.