Public sector investment consultancy

In setting the investment strategy for an LGPS Fund, we use our tried and tested tools along with our specialist knowledge of the LGPS, as well as large corporate and not-for-profit schemes and other large asset pools in areas such as Charities, Endowments, Family Office and Insurance companies under our Specialist Investment Advisory team.

We will start by finding out what the Fund’s circumstances are by undertaking an ABC exercise, to establish your Aims, Beliefs and Constraints. This exercise answers questions such as: what is your required return (aims), what asset classes are appropriate for the Fund (beliefs), and what contribution variability is acceptable (constraints)? The ABCs set a framework for effective decision-making.

In our review we test the asset allocation using scenario testing and stochastic modelling. The review will also be supplemented by input from our Research Team, which covers Strategy, Markets, Managers and Sustainable Investment - each of which has dedicated support specialising in each area. This resource helps ensure we are able to factor in the current market environment as well as longer term aims in deciding how best to implement the strategy, while ensuring the evolving development in Sustainable investment and ESG matters are accounted for throughout the portfolio.

We work in partnership with Funds to set an appropriate and robust investment strategy, whilst considering closely the regulatory environment and the external pressures on LGPS Funds. This will include incorporating pooling guidance.

We provide monitoring reports to include the performance of each investment manager, including within the relevant pool, together with commentary on any structural change within the investment management company, for example, the departure of a key manager. We also include advice around questions that should be raised with the investment manager.

We use LGPS Monitor, our online funding and investment tracker to monitor performance relative to the Fund’s liabilities.

We help Funds to set climate and ESG policies, stewardship and voting policies and adjust their mandates to implement them and subsequently monitor them.

We also have experience in preparing TCFD reporting, and are able to bring our considerable expertise to helping Funds understand key areas of focus within reporting, and what might be a suitable approach for your Fund on a voluntary disclosure basis.

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We can provide training whenever required on a significant range of topics to different stakeholders to improve knowledge and understanding. The training would equip individuals with knowledge that is relevant to their roles and responsibilities. This could involve attending meetings, giving webinars or one-on-one sessions. We can run training events for scheme managers, committee members, officers and pension board members to provide the opportunity to network with people in similar roles from other funds.