The new and expanded services such as Asset pool companies providing advisory services which were proposed in the Bill, will see many aspects of fund investment passing from administering authorities to the pools. And, with the template from government only comprising nine asset classes, failing to address the basics now, may mean that some funds end up with limited influence and choices when it comes to key decisions, warns the consultancy.
To successfully engage with their pools, funds should ensure that they have thought about the changes the Bill will bring them. These insights should then be used to set very clear investment beliefs, that they’re able to communicate effectively. A funds’ beliefs are a basis for discussions and decisions on the structure of its investments as well as strategic investment decisions, adds the leading pensions and financial services consultancy.
Commenting on value that will come from funds engaging with their pools on the basics, ahead of the Pensions Schemes Bill passing into law, David Walker CIO, Hymans Robertson, says: “This is a vitally important time for LGPS funds. We know that the Bill is bringing significant change to the pensions landscape as a whole, but for the LGPS in particular, how changes are developed in this initial phase will have a far-reaching impact. Any missteps could result in investment outcomes being negatively impacted in the longer-term.
“With the March 2026 deadline looming funds will also wish to ensure that pooling is a success and they can establish good alignment between their goals and what the pools can achieve. When it comes to non-pooled assets, funds can also ensure that they have a say in what is done with them. Talking through the basics now will help funds to maintain oversight and fulfil their governance obligations. While part of the new rules mean that funds will need to take principal investment strategy advice from their pool, they are still responsible for their own individual investment strategies, which considers asset allocation, responsible investment approach, and local investment priorities – all of which are linked to fiduciary duty.”
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