London Councils is searching for an asset servicing provider to advise on a proposal to unite £20 billion ($32.5 billion) in assets of London's 32 borough councils and the City of London, confirmed Hugh Grover, director, fair funding, performance and procurement.
The common investment vehicle is expected to use the U.K. Authorized Contractual Scheme model, a co-ownership investment scheme that allows for collective investment in transferable securities. Mr. Grover said that since the proposal is “breaking new ground for local government pension schemes … there is an element of looking at what offers there might be in the market to help us take things forward.”
The provider would work with lawyers and financial services advisers on a business case for consolidating the investments across public pension funds in London, according to the invitation to quote on London Councils' website. Quotes must be submitted by Jan. 6.
The next stage, Mr. Grover said, is for London Councils to present the business case to borough leaders, who will then decide on the next steps.
