UK – The roughly £3.5bn (€5bn) London Pension Fund Authority is looking to appoint an investment director – a new position, which allows the chief executive to put less emphasis on investment.
The position was created following a reshuffle of the LPFA’s senior management team, according to the job profile. The changes have separated the organisation into two areas: investment management and pensions administration.
Until now, finance and investment director Amanda Walker managed the function as a direct report to LPFA chief executive Peter Scales. However, her role has changed to focus on strengthening all support functions (including finance) as corporate resources.
“We have broadened the recruitment to provide a CEO with less emphasis on investment, supported by a dedicated investment director,” Scales told IPE.
According to Scales, the new investment director will be responsible for “bedding down” and “monitoring” the LPFA’s new investment portfolio.
In August 2005, the LPFA outlined a new investment strategy following disappointing returns. The shift included a break from the traditional equity-bond structure, to one more closely related to liabilities and cash flow requirements.
The fund’s investment portfolio and investment services are directly outsourced, according to the job advert.
The current investment portfolio consists of 42% in equities, 3% in private equity, 11% in target return (unconstrained) portfolios, 4% in property, 35% in cash-flow matching bonds, and 5% in currency and cash.
“Our alternative assets portfolio is still being built up and the new ID will inevitably have input to that,” said Scales.
“But there is no intention of major changes - no new broom sweeping clean.”
The position promises a roughly £100,000 salary and a defined benefit pension with the non-contributory Local Government Pension Scheme.
The investment director will take control of all aspects of the investment strategy and performance, while working “closely” with the new chief executive, said the job description.
“The CEO role always covered investments and will continue to do so,” Scales said.
Scales is due to retire at the end of 2006 following a three-month handover period. The new CEO can expect to earn around £120,000 per year.
He told IPE that he hoped an announcement of a new investment director would be made by the end of July, with a view to begin in the post by October.
Headhunting firm Odgers Ray & Berndtson is leading the search for both positions. The shortlist is “unlikely” to include more than six candidates, said Scales.
The investment director’s salary will also be subject to an annual performance-related award and other benefits, said the advert. “More might be available for an exceptional candidate.”
The closing date for the investment director and CEO positions is May 15.
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