The collective investment vehicle (CIV) to manage over £24bn of assets in local government pension funds is ‘in business’ London Councils has said.
A limited liability company has been set up to operate the model, which aims to reduce the cost of managing local government pension schemes while increasing returns.
The CIV will provide a platform for all London boroughs and the City of London to collaborate and collectively invest their assets.
Chair of London Councils, Mayor Jules Pipe, said: ‘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’. This proposal by London Councils is the most efficient and effective way forward.
‘London Councils’ work on a CIV for London local government has been vital in demonstrating the potential of this model to reduce costs, increase returns and potentially support infrastructure investment. This is an approach that the government has endorsed in its recent consultation. Protection for council tax payers and pension scheme members will continue to be a priority.’
Mayor Pipe added that in principle the CIV would be open to investors outside of London.
