Asset pooling
Overview
The Cambridgeshire and Northamptonshire Pension Funds, along with nine other like-minded Funds, are members of the ACCESS asset pool. The Government established ACCESS as part of its LGPS reform agenda to:
- encourage better governance
- achieve scale benefits
- maintain or improve investment performance.
To govern the pool, the ACCESS Joint Committee was formed, consisting of the Chair from each of the eleven Funds.
For further details, visit the ACCESS pool website.
Pensions review: LGPS fit for the future consultation
On 14 November 2024, the Chancellor announced a series of pension reforms aimed at consolidation and encouraging UK investment. Following this announcement, the Government launched the LGPS Fit for the future consultation.
Key LGPS asset pooling proposals
The consultation outlined several important proposals for LGPS asset pooling:
- Administering authorities (AAs) remain responsible for setting investment strategy. They must delegate the implementation of that strategy to the pool.
- AAs can continue to set strategic asset allocation using a prescribed template.
- AAs must take advice on their investment strategy from the pool.
- AAs can challenge the advice, mainly by a need to have an independent adviser.
- Pools must be established as FCA-regulated investment management companies. They must also have the expertise and capacity to implement investment strategies.
- AAs must transfer legacy assets to the management of the pool.
- Pools need to be able to carry out due diligence on local investments and to manage them.
Consultation response
In response to the Government’s proposals, the Funds’ worked with their Pension Committees to prepare a detailed consultation submission. You can read their response on their respective key document pages:
