Noticeboard
People moves
London CIV, the £19bn pool managing half of London’s pension assets, has announced the departure of its CIO, Mark Thompson. He took on the position at the beginning of September but decided soon after that he could not commit to the demands of the role, he resigned to spend more time with his family. Thompson joined CIV from the HSBC Pension Scheme, where he spent more than eight years as chief investment officer.
London CIV is now looking to appoint a new head of its investment team, on an interim and permanent basis. The pool aims to appoint someone who is able to lead on the implementation of the pool’s ESG strategy. Once pooling is complete, London CIV is set to manage more than £40bn of assets. Gareth Mostyn, who is currently chief finance and operations officer at the National Church Institutions of the Church of England has been nominated as a candi- date for secretary and chief executive of the
Mandates
DC workplace pension provider NEST has awarded a £500m private credit mandate to BNP Paribas Asset Management. The capi- tal will be invested over the next 12 months and include loans to European commercial real estate and infrastructure financ- ing, loans to UK SMEs, and to European and US mid-market corporates. The news comes just a month after NEST announced that it has awarded two global real state and infrastructure debt mandates of around £400m to £500m combined to Amundi and BlackRock, these funds will also be allocated in the next 12 months. The new mandates are set to bring the total pri- vate credit allocation in NEST’s portfolio to some 6% by the end of 2020. Nest also announced that it has created a subsidiary called NEST Invest. The firm is currently awaiting FCA authorisation to become an Occupational Pension Scheme (OPS) and
is aimed at making it easier for NEST to secure co-investments in private markets. Other pension schemes, including RBS and BT, have created similar firms. The Pension Insurance Corporation has confirmed a £40m private debt investment with Soha Housing, a regulated housing association based in South Oxfordshire. The investment follows an initial £40m private placement completed last year and will see the housing association build 250 homes each year as part of its development programme. The debt is due to mature in 2051 and is aimed at matching PIC’s pen- sion liabilities in years where it is difficult to source cash-flows in the public bond markets. Earlier this year, the corporation has also invested £100m in East Midlands Housing Group and £40m in Eildon Hous- ing Association at the Scottish border. In the first half of 2019, PIC completed nine
10 | portfolio institutional | November 2019 | issue 88
new business transactions with total premi- ums of £6bn. PIC is sitting on a pipeline of new business with more than £40bn of pension scheme liabilities looking to trans- act, highlighting the growing demand for buy-outs among DB schemes. The National Grid Pension Scheme, a DB scheme which manages £20bn, has com- pleted a £2.8bn buy-in deal with Rothesay Life. The deal is aimed at providing enhanced certainty around the impact of changes in life expectancies, and removing financial risks such as interest rate and inflation changes for parts of the scheme. As part of the deal, Rothesay Life purchased £2.8bn of UK fixed interest securities held in Section A of the scheme. This represents a bulk annuity under which Rothesay Life commits to reimbursing the trustee for all the pension benefits payable to Section A pensioners aged 70 years or less.
Church Commissioners, the Church of England’s £8.3bn investment vehicle. His appointment is subject to approval by the Church Commissioners at its EGM to be held in November. The role is due to start in February 2020. If appointed, Mostyn would be in charge of the policy lead for the church, as well as taking on strategic lead- ership of its investment team. Independent trustee service provider Dalri- ada Trustees has appointed Vassos Vassou and Chris Roberts to its board of directors. The pair are heads of the London and Man- chester office for Dalriada and will continue to be responsible for the firms local busi- ness strategy. Vassou has been with Dalriada for three years, having spent around 20 years as a consulting actuary for Capita Employee Benefits and Willis Tow- ers Watson. Roberts joined Dalriada in 2011 and initially worked for the Glasgow office. Prior to that, he held administration man- agement positions at the Church of Eng- land and HSBC.
Calendar
Upcoming portfolio institutional roundtables:
February Fixed income
March ESG
April CDI
May Emerging market debt
June Defined contribution
July Factor investing
September Responsible investing
October Multi asset
November Outlook 2021
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