London Pension Funds Authority is Hiring another 20 Investment ProfessionalsEdmund Truell, chairman of the London Pension Funds Authority, announced that the group is looking to hire another 20 investment professionals by 2019, specializing in equities and illiquid investments such as property, private equity and infrastructure.
Susan Martin, chief executive of the scheme, said: “The best way to reduce costs is to do as much as we can in-house.”
The LPFA’s move to bring more investment in-house reflects similar decisions by Australian Super, Australia’s largest pension fund, which plans to hire 50 in-house investment staff, and Railpen, the £20bn UK pension scheme.
One of the earliest casualties of the LPFA’s increased in-house drive was Brevan Howard, the hedge fund, which lost its LPFA mandate in June.
“They were very expensive, did not offer value for money net of fees and did not meet our transparency requirements,” said Mr Truell.
The potential for further contract losses or reduced fees looms for the remaining fund houses the LPFA currently outsources investment mandates to if the scheme continues to pool its assets with other local authority funds.
The LPFA teamed up with the Lancashire pension fund two weeks ago to create a commonly managed, jointly invested pool of assets in an attempt to reduce costs.
The combined schemes are in “advanced negotiations” with more than a dozen local authority pension funds also interested in joining the combined structure, according to Mr Truell.Source: Financial Times