Professional Pensions rounds up some of the latest tender awards from across the industry.
Several Local Government Pension Scheme (LGPS) administering authorities have put out a tender for a multi-provider framework agreement for the provision of pension administration software services primarily in support of the LGPS.
Those included in the scope of the procurement are the administering authorities of the Norfolk Pension Fund, the Cheshire Pension Fund, the Kent Pension Fund, the Greater Manchester Pension Fund, the Essex Pension Fund, the West Yorkshire Pension Fund, and the West Midlands Pension Fund, alongside the Northern Ireland Local Government Officers' Superannuation Committee.
The buyers confirmed the framework agreement should be available to all LGPS funds.
The tender notice states there is no guarantee of business, but “the expectation is that up to £300m could be procured against this framework agreement”.
The deadline for request to participate in the framework agreement is 20 January 2025.
The Pensions Management Institute (PMI) has appointed Mortality Monitor as its data in pensions insight partner.
The partnership with Mortality Monitor, which has worked in mortality screening for almost 20 years, will launch this month and will help PMI members with de-risking, innovation and data management through interviews and webinars.
The firm, which was the original adopter of the government’s DDRI license, has expertise in spouse, beneficiary and residence information, services for losing contact with members and data identification products.
PMI chief executive Gareth Tancred said: “We believe that de-risking, tracing and data management are pertinent issues within the pensions industry that perhaps do not receive enough attention. This partnership with Mortality Manifest will help pension schemes to better engage with these mission-critical factors, through their industry-leading expertise. We look forward to working alongside the company to champion professional development in the pensions industry.”
Mortality Monitor managing director Sam Drye added: “We are delighted to be partnering with the Pensions Management Institute. Mortality Monitor is excited to support PMI members through its range of core products and expertise which will enable schemes to improve the quality of member data. Our partnership comes at a good time, particularly with the requirement for consistent and high-quality data within all schemes as the pensions dashboards go-live fast approaches.”
Cadent Gas Pension Trustee has appointed Northern Trust as custodian for its defined benefit pension scheme’s public and private assets.
Northern Trust will act as an asset servicing partner to support the £4.6bn scheme, after being selected following a “detailed” due diligence exercise that was independently managed.
Northern Trust head of asset owners Europe Ian Hamilton said: “Northern Trust is an industry leader in supporting the needs of the asset owner community and the UK pension sector specifically.
“We are well positioned to help Cadent Gas Pension Scheme with their changing requirements, and we look forward to working collaboratively, helping them reach their goals.”
The Wiltshire Pension Fund has appointed Redington as its strategic investment adviser.
The consultancy will support the investment strategy of the £3.5bn Local Government Pension Scheme (LGPS) fund, which looks after the benefits of around 85,000 members, and focus on delivering its sustainable and impact objectives.
Redington investment consulting managing director Kieran Harkin said: "Wiltshire Pension Fund is recognised as a leader in sustainability and impact investment, with a strong commitment to doing right by its members. Being entrusted with the responsibility of providing investment consultancy services is true testament to the quality of advice being delivered across our LGPS and sustainable Investment teams, and so we couldn’t be more delighted by this latest appointment.
“We look forward to working together with the officers, pension fund committee and wider stakeholders to position the fund to drive investment innovation and ultimately deliver on its vision, goals and values."
Wiltshire Pension Fund head Jennifer Devine added: “We are delighted to be working with Redington, we believe their skills and approach to investments strongly align with the aspirations and investment goals of Wiltshire Pension Fund.
“Philosophical alignment between asset owners such as WPF and their investment advisers and managers is critical to ensuring meaningful impact and sustainability is embedded at every stage of the investment process. We look forward to working together on the upcoming investment strategy review and the implementation of the fund's responsible investment plan, particularly regarding how we will invest in nature positive assets and continue to build on our UK impact.”
The trustee of the Caffyns Pension Scheme has appointed WTW as fiduciary manager.
The appointment, following a competitive tender process intermediated by XPS Group, will see WTW administer the scheme’s £60m in assets under management. The consultancy will also have the responsibility to assist the trustee in developing and implementing the scheme’s investment strategy, which includes access to WTW’s preferred third party investment managers.
Trustee chair Mark Harrison said: “The trustee was impressed with WTW’s understanding of the scheme’s specific situation and proposal of a robust and competitively priced solution to help us over what will be a critical period for our scheme. We are very much looking forward to working with WTW as the scheme moves towards meeting its ultimate goals.”
WTW head of investment clients GB Pieter Steyn commented: “We are delighted that the trustee of the Caffyns Pension Scheme has decided to appoint WTW to manage its investments. We continue to evolve with client needs and this important new relationship with Caffyns Trustees demonstrates the strength of our team and offering.
“Our new low cost, liquid fiduciary management solution already has seven clients invested with total assets of £940m as of 30 September 2024. The addition of Caffyns Pension Scheme and another recent win will tip assets in the new solution well over the £1bn mark.”
XPS Group head of fiduciary management oversight André Kerr added: “The trustee wanted to appoint a fiduciary manager that has the capabilities to successfully manage the scheme all the way to its final endgame and we were delighted to assist them in appointing WTW.
“WTW showed that they are the right party to support the trustee by clearly demonstrating how they would take the scheme right the way through to the conclusion of its journey plan in a way that fully aligned with the trustee’ objectives. WTW’s understanding of the scheme’s context alongside the high liquidity and low cost of their solution really stood out in their proposal.”
The Merseyside Pension Fund has appointed Schroders Solutions to oversee a £3.8bn equity protection strategy.
The strategy enables the Local Government Pension Scheme (LGPS) fund to maintain its equity exposures to meet its long-term performance objectives while simultaneously managing downside risk. The strategy will also provide support for the scheme’s private asset positioning to ensure a balanced allocation between liquid and illiquid exposures.
Schroders said it has worked closely with the LGPS fund to design a solution to protect the scheme’s equity portfolios ahead of its triennial valuation next year and that “current market dynamics” provide the opportunity to implement the protection strategy in a “cost-efficient manner”.
Merseyside director of pensions Peter Wallach said: “We are very pleased with the advice and support of Schroders Solutions in working with us to implement an equity protection strategy that aligns with changes to our investment strategy and provides some stability in the funding level ahead of next year’s actuarial valuation.”
Schroders Solutions executive chair James Barham added: “We are delighted to have been selected to work with the Merseyside Pension Fund on this important project. Developing innovative solutions that work in partnership with the scheme's investment strategy is one of our core competences and we look forward to developing our relationship over the coming years.”
Fulcum Asset Management (AM) has appointed Domain Timber Advisors to its long-term asset fund (LTAF) panel.
Domain Timber Advisors (a subsidiary of Domain Capital Group) will join the manager’s ‘Panel of Illiquid Specialists’, as part of an effort to achieve financial and ESG goals with strategic investments in US forestation.
As part of the panel - which includes venture capital, value-added real estate and infrastructure, natural resources and private credit - the asset manager has invested in specialist private markets managers globally for LTAFs, specifically for UK defined contribution (DC) plans.
The appointment will seek to meet “stringent sustainability standards” set out by the Forest Stewardship Council, with long-term ecological impacts of the project covering improved biodiversity.
The project mainly focuses on the US South, with Domain considering opportunities in “all timber-produced regions”.
Fulcrum Alternative Solutions head Matt Roberts said: “This represents an exciting new strategy for our private markets offering. Domain's focus on sustainability and smaller lot size deals are very appealing facets of the mandate.
“Fulcrum Alternative Solutions identifies excellent private market specialists and works to make them accessible for UK DC pension plans and other institutions. We believe managers like Domain offer both a compelling return opportunity and can help contribute to biodiversity improvement through, for example, reintroducing native species and improving certification standards.”
Domain Timber Advisors managing director and chief executive of natural resources Joe Sanderson added: “Over the past two years, our teams have worked diligently to craft a unique investment platform focused on acquiring and managing US forestland assets within an evergreen investment structure.
“This approach allows us to enhance biodiversity and other ecological attributes of forestland while delivering sustainable financial outcomes.”
The London Pensions Fund Authority (LPFA) has appointed Minerva as its vote monitoring service partner.
The Local Government Pension Scheme (LGPS) fund said the appointment will help strengthen its stewardship role as an asset manager.
Minerva Analytics will provide insight into fund manager use of share voting rights and the rationale behind voting decisions.
The LPFA will use Minerva to better understand how share voting decisions made on its behalf are aligned with the net-zero voting guidance from the Institutional Investor Group on Climate Change, as the fund plans to develop a voting policy to support its net-zero commitment.
LPFA responsible investment manager Paul Hewitt said: “The UK Stewardship Code calls on asset owners like us to monitor their asset managers so it’s essential that we can evidence how our investments are managed in alignment with our stewardship strategy and policies.
“Our strong commitment to net zero and good stewardship means we have a responsibility to make sure we do our bit to understand how our managers are aligning with that commitment and we take these responsibilities seriously. This partnership with Minerva will support us in doing that systematically and it’s an important step for us in preparing for alignment with the Stewardship Code in future.”
Minerva Analytics chief executive Sarah Wilson added: “We are delighted to be working with the LPFA once again and particularly alongside our other LGPS clients, many of whom are successful Stewardship Code signatories. We are proud to be supporting their mandates by developing tailored voting policies which reflect their strategic investment goals and priorities.”
The Wiltshire Pension Fund has appointed Barnett Waddingham (BW) to provide a range of services to the Local Government Pension Scheme (LGPS) fund.
The LGPS fund - which has over 180 participating employers and more than 86,000 members, with over £3.2bn in assets under management - has appointed the consultancy’s public sector team to provide actuarial, benefits, governance and fund risk consultancy services.
Pension SuperHaven has appointed First Actuarial as its administration provider.
The new pensions solution offers members an occupational scheme and the ability to transfer existing pots into pensions, while the offering will also include a “shared outcome arrangement” for members to benefit from any investment upsides.
Pension SuperHaven trustee board chair and Pi Partnership trustee Sam Ashraf said: “First Actuarial impressed us with their extensive suite of administration services and member-centric approach. They immediately understood the importance and fundamental need for this initiative in the market. Additionally, they are dedicating technical resources and technology to support members, ensuring smooth collaboration with our existing partners.”
Co-founder Edi Truell added: “We are delighted to see the Pension SuperHaven trustee decide to partner with First Actuarial. I am pleased that they have won through in what was a well-managed and thorough selection process.”
First Actuarial partner Mark Rowlinson said: “We are thrilled with this appointment and now look forward to providing Pension SuperHaven with a first-class member experience for its savers, who can exchange their pots for the security of a lifetime pension. It’s great to see some genuine innovation in the market. By using productive assets and sharing returns with members, Pension SuperHaven aims to provide better outcomes for members. This aligns with our own ambitions and fits well with recent pension policy announcements such as the Mansion House reforms.”