Link Fund Solutions Ltd has received FCA Regulatory Approval for The LF ACCESS Pool Authorised Contractual Scheme (ACS) and first sub-fund. This is a major milestone in the project to provide the ACCESS pool with a range of pooled investment funds, enabling authorities to execute their local investment strategy whilst benefiting from economies of being one of the largest investment pools in the UK.
The first global equity sub-fund is due to launch in October 2018 with an investment of £1.6bn by three of the ACCESS LGPS pension funds, resulting in anticipated savings of £1.5m per annum. Eventual savings are expected to be £1.9m per annum.
It is anticipated that more sub-funds will be launched in early 2019 facilitating a further significant move of assets to meet the government’s objective of delivering reduced costs whilst maintaining overall investment performance.
The approval from the FCA comes on the anniversary of the formation of the ACCESS pool via the Inter Authority Agreement between the eleven participating LGPS Administering Authorities.
Councillor Reid, Chairman of the ACCESS Joint Committee said: “This has been a significant first year with the appointment of the passive manager (savings of £5m per annum), the appointment of Link as the Operator and now the launch of the ACS and the first sub-fund.”
Peter Hugh-Smith, Managing Director, Link Fund Solutions Ltd said: “Link Fund Solutions and ACCESS have built a collaborative working relationship as we have worked towards the authorisation of the first LF ACCESS fund. Link Fund Solutions looks forward to utilising its experience and capabilities in launching the first fund and subsequent funds and aiding ACCESS to meet the government’s requirements and delivering material cost savings to all participating authorities.”