The London collective investment vehicle (CIV) for the capital’s local authority funds has named its first four managers, to be in charge of £6bn (€8.5bn) in equity mandates.

Allianz Global Investors will be in charge of the first sub-fund to be launched by the London CIV.

The active global equity fund has attracted more than £500m from three of the participating local government pension schemes, chief executive Hugh Grover said.

Grover added that a further eight sub-funds were expected to be launched by the end of the financial year, possible after the Financial Conduct Authority (FCA) authorised the vehicle.

The authorisation sees the London CIV recognised as an alternative investment fund manager (AIFM), in line with the European Directive by the same name.

Assets are held within an Authorised Contractual Scheme, the UK’s tax-transparent fund.

Grover said a large part of the £6bn expected to be in London CIV sub-funds by the end of the financial year would be passively managed equities, overseen by Legal & General Investment Management (LGIM) and BlackRock.

LGIM and BlackRock will each manage three sub-funds, he said.

Baillie Gifford will be in charge of a second actively managed global equity sub-fund, as well as a standalone diversified growth fund.

Grover added that the London CIV now employed six people and would hire a seventh soon.

The new staff includes Julian Pendock as investment oversight director, and Brian Lee as COO.

Pendock joins from the London council of Brent, where he was the council fund’s investment and pensions manager, a role he assumed after five years at Senhouse Capital, latterly as its CIO.

He has also worked at JP Morgan Chase and Bedlam Asset Management.

Bob Kerslake, former permanent secretary at the Department for Communities and Local Government (DCLG), will chair the London CIV’s board.

Kerslake retired from the DCLG in February this year and, until September 2014, was head of the UK’s civil service.

Prior to that, he was chief executive of Sheffield City Council, and chief executive of the Homes & Communities Agency, the public body in charge of affordable housing in England.

Chris Bilsland and Eric MacKay have also joined the board, appointed as non-executive directors.

Until 2013, Bisland was chamberlain of the City of London, the council’s financial director.

MacKay is currently head of legal, risk and compliance at asset manager TT International, and was previously F&C’s chief risk officer. 

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