Link Fund Solutions (Link) and Russell Investments have been hired to pool and run the £15 billion (€16.9 billion) Wales Pension Partnership (WPP) scheme, a collective investment vehicle for the eight local authority pension funds in Wales.
The WPP said it followed a “rigorous” procurement process with its advisors, Hymans Robertson and Burges Salmon.
Link will run a tax efficient UK collective investment vehicle on behalf of the WPP.
A number of investment manager firms will be hired but the funds will retain control over strategic asset allocation decisions.
The WPP hopes that by using fewer investment manager firms with larger mandates the pool will deliver fee savings.
Chris Moore, director of corporate services at Carmarthenshire County Council, host authority for the WPP, said: “The appointment of Link is a significant milestone in the establishment of a £15 billion investment pool for the local government pension funds in Wales.”
The WPP comprises the following funds: Cardiff and Vale of Glamorgan, City and County of Swansea, Clwyd, Dyfed, Greater Gwent (Torfaen), Gwynedd, Powys and Rhondda Cynon Taf.
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