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Special Report

ESG: The metrics jigsaw


LPFA takes on independent investment advisor

UK- The £3bn London Pensions Fund Authority (LPFA) has appointed David Rough as an independent investment advisor in response to publication of the Myners report last year. Until recently, Rough was group director of investments at the Legal & General Group and he remains a consultant with L&G Investments.

LPFA decided to follow Myners’ recommendations and to appoint an external advisor to work with the board and to look at the advice coming from external investment managers.

The fund is about to carry out an ALM study. Chief executive Peter Scales says: “it was the right time to bring in what will be an independent advisor to give us more of a hands on investment understanding of what is going on in the markets.

“We wanted to balance the advice from the actuaries on the asset liability side with the advice we get from the board which is not directly hands on, investment experience. David offered a very good complement to what we have at the moment.”

Rough will analyse any proposed changes to the portfolio and will offer advice on the implications of any such changes. He will attend the quarterly meetings and review the monthly reports from the fund managers.

Chairman Neil Newton said: “I am delighted that we have attracted such a key figure from the investment industry to advise the board and strengthen the prudential framework within which we operate the local government pension scheme.

Many other local authority pension schemes, including Essex and Strathclyde have taken on independent advisors. Some opt for independent consultants, others for independent individuals and trustees.

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