economies of scale

Investor Profile

A step in the right direction: investment pooling for UK local authority funds

The London Pension Fund Authority (LPFA) and the Lancashire County Pension Fund (LCPF) have agreed to a liability asset management partnership – known as the Lancashire and London Pensions Partnership (LLPP) – that allows for the pooling of assets and a reduction in investment costs. Each of the funds will retain their own strategic asset […]

Amanda WhiteJuly 29, 2015

Uncategorised posts

More evidence big is better in pension funds

A pension fund that has 10 times more assets under management has on average 7.67 basis points lower annual investment costs according to a working paper from authors at De Nederlansche Bank, that explores the relationship between pension fund size and investment costs. Written by Dirk Broeders, Arco van Oord and David Rijsbergen the paper […]

Amanda WhiteJuly 3, 2015

Asset Allocation

UK local authority funds question “bigger is best”

UK local authority schemes are under pressure to merge. It’s their turn to suggest ways in which pooling investments, or adminstriation, could achieve the economies of scale necessary for survival, but many are resisting the notion that “bigger is better” when it comes to investments. The United Kingdom’s local government pension schemes have begun […]

Sarah RundellNovember 20, 2013