This consultation was published on 1st May 2014 and runs until 11 July 2014. The objective is to reduce the cost of managing local authority pensions.  It is based on a report by Hymans Robertson. Two key proposals:

Moving to passive fund management of all listed assets, accessed through a common investment vehicle.

Ending the use of “fund of funds” arrangements in favour of a common investment vehicle for alternative assets.

The consultation proposes moving to two collective vehicles, one for listed assets and the other for alternative assets. The relevant consultation questions are:

Q1. Do you agree that common investment vehicles would allow funds to achieve economies of scale and deliver savings for listed and alternative investments? Please explain and evidence your view.

Q2. Do you agree with the proposal to keep decisions about asset allocation with the local fund authorities?

Q3. How many common investment vehicles should be established and which asset classes do you think should be separately represented in each of the listed asset and alternative asset common investment vehicles?

Q4. What type of common investment vehicle do you believe would offer the most beneficial structure? What governance arrangements should be established?