The Buckinghamshire Pension Fund, valued at £4bn, has been approved to join the London CIV (LCIV), a collective investment pool. The decision was made as part of a broader process to formally approve an updated Shareholder Agreement and Written Resolution.
The move is seen as a positive one, potentially bringing a substantial addition in total pool assets without significantly diminishing the ownership of existing partner funds. According to the Fund Governance Report, the proposal for Buckinghamshire to join the LCIV is a positive one because it will mean a substantial addition in total pool assets and no significant diminution in the ownership of the existing partner funds.
All London Boroughs had already agreed to the membership in principle.
The next step involves each fund approving an updated Shareholder Agreement and a Written Resolution. Each London Borough is asked to agree these documents, which are included as appendices in the agenda. The Head of Legal Services needs to seal the agreements on behalf of the council.
The decision comes as the government pushes for further consolidation of Local Government Pension Scheme (LGPS) investments into larger pools. In April, two of the eight pools, ACCESS and Brunel, were disbanded, prompting 21 funds to seek new affiliations. The disbanding of ACCESS and Brunel pools has meant that these 21 Funds have had to find a new pool, predominantly choosing Border to Coast or the Local Pension Partnership Investments pools. The Buckinghamshire Pension Fund's choice to join the London CIV was announced in September.
