The Local Government Pension Scheme (LGPS) has awarded 15 contracts to nine companies to provide transition management services for the emerging asset pools.

Goldman Sachs, BlackRock, Legal & General Investment Management, Macquarie, Northern Trust and Russell Investments were all tasked last week with providing transition management and execution services to the UK’s 89 local authority pension funds as well as the eight emerging asset pools.

Allenbridge, Hymans Robertson and Mercer were awarded advisory contracts.

The deals could be lucrative given that, from April, the eight asset pools being created by LGPS funds must begin taking assets on board from fund managers. In total, the 89 funds manage more than £260bn (€296bn). Transition managers are responsible for implementing portfolio changes to reduce trading costs and time out of the market when an investor shifts from one asset manager to another.

Nicola Mark, head of Norfolk Pension Fund and chair of National LGPS Frameworks, said: “The process of transition to the pools is set to be a very testing one for all of us and LGPS funds and pools face an array of complex legal, technical and governance issues.

“The establishment of this new transition management and implementation services framework has enabled individual funds and pools to focus on the other critical challenges required for the April 2018 deadline and will continue to deliver savings in both time and money in the years ahead.”

The project was the first designed specifically for the pools and involved representatives from seven of the eight investment collaborations.

National LGPS Frameworks has previously created procurement models for a range of services for LGPS funds including custody, legal advice, actuarial and benefits consulting, passive investments and stewardship.

LGPS funds and asset pools are free to choose a provider directly from those awarded a contract by National LGPS Frameworks, or run a competition between those selected before awarding a mandate.