Alternatives Mix of direct ETFs Mgmt.: <1 WTE (est. Existing Mix Control over investments Resilience (existing staffing arrangement too £59m (commodities) and <1 WTE) (Limited) experience Key man risk needs correcting 1.5% funds/partnerships Admin.: Meets small Actively drive investment over next 3-5 retention until final LLP investment run-off (absolute return funds current requirement & years High LLP fees (but reducing all the time) & infrastructure) needs investment to Co investment potential with greater Long term increase meet potential future experience allocation (to 5%) demand Existing staff to potentially draw from for Legacy Assets / Governance (Mgmt. & Admin.) Pool Experience from other LGPS Funds Pool not ready for 3-5 years? Fee reductions through scale No clarity yet as to how the mechanics of Co-investment (long term) investing will work Ext. Manager Quicker investment of cash? Expensive (IMA) Experience & record Lack of transparency Reduced internal staffing required Income? Management resilience? Admin resource for draw-downs & receipts (LLPs) Cash Short term Mgmt.: <1 WTE (est. Fund The Fund must still provide resources for cash flow and treasury management £401m investments <1 WTE) MBC provide? 11% Long term reduce Admin.: MBC provide allocation (to 3%)
Alternatives £59m 1.5% Mix of direct ETFs (commodities) and funds/partnerships (absolute return funds & infrastructure) Long term increase allocation (to 5%) Mgmt.: <1 WTE (est. <1 WTE) Admin.: Meets small current requirement & needs investment to meet potential future demand Existing Mix Control over investments (Limited) experience Actively drive investment over next 3-5 years Co investment potential with greater experience Existing staff to potentially draw from for Legacy Assets / Governance (Mgmt. & Admin.) Resilience (existing staffing arrangement too Key man risk needs correcting retention until final LLP investment run-off High LLP fees (but reducing all the time) Pool Experience from other LGPS Funds Fee reductions through scale Co-investment (long term) Pool not ready for 3-5 years? No clarity yet as to how the mechanics of investing will work Ext. Manager (IMA) Quicker investment of cash? Experience & record Reduced internal staffing required Management resilience? Expensive Lack of transparency Income? Admin resource for draw-downs & receipts (LLPs) Cash £401m 11% Short term investments Long term reduce allocation (to 3%) Mgmt.: <1 WTE (est. <1 WTE) Admin.: MBC provide Fund The Fund must still provide resources for cash flow and treasury management MBC provide?
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