The £810m London Borough of Hillingdon Pension Fund has appointed Legal & General Investment Management (LGIM) to manage £215m in index-tracking investments.
The appointment sees Hillingdon replace State Street Global Advisors (SSGA) as provider of the mandate in order to reduce costs while maintaining investment performance.
LGIM said the mandate, which will be invested across its range of index funds, benefited from being a commercial agreement with the London Collective Investment Vehicle (CIV) on behalf of the London boroughs.
London Borough of Hillingdon pension committee chairman Philip Corthorne 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.”
LGIM head of index and multi-asset distribution Adam Willis (pictured) 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.”
In November last year, a group of seven schemes comprising Cheshire, Leicestershire, Nottinghamshire, Shropshire, Staffordshire, Warwickshire and Worcestershire appointed LGIM to manage a £6.5bn pooled passive mandate.
