A new limited liability company has been created to make it easier for London boroughs and the City of London to collectively invest their pension assets.
The boroughs, which together represent more than £24 billion ($40.8 billion) in local authority pension funds, now manage their assets separately.
The new common investment vehicle should result in lower costs and better returns, said a news release from London Councils, a think tank and lobbying organization for 32 boroughs and the City of London.
“There are many more milestones to achieve before the CIV will be fully operational, but it is now possible to say that we are ‘in business,’” said Jules Pipe, chair of London Councils and mayor of the Borough of Hackney, in the release.
Spokesmen for London Councils could not be reached for further comment by press time.