London Pensions Join Forces

Sep 28 2011 | 9:18am ET

A London pension fund is planning a new system that could change the way public pensions invest in hedge funds.

The London Borough of Croydon is behind the scheme, under which local authority pension plans will join forces to win reduced fees from consultants. If the system works, it could be extended to hedge fund services, HFMWeek reports.

In addition to Croydon, the London Borough of Harrow and a half-dozen other unidentified London authorities are participating. The group has hired Aon Hewitt as its consultant.

"In working collaboratively, fees and charges are brought down and Aon Hewitt have a 'tipping point,' whereby a discount is awarded if five or more local authorities come on board under the agreement," Nigel Cook, head of Croydon's pension scheme, told HFM.

"The managers' framework agreement is something that all London local authorities will be interested in and they are currently exploring it among themselves," Aon Hewitt's Ian Bailey said. "If less procurements are necessary, there are definitely savings, and I also think the interest is driven by a desire to be more nimble. It will be important for fund managers to put their best foot forward and get on the list because it could prove difficult to win mandates without being on it."

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…