The Lothian Pension Fund (LPF) plans to further develop and strengthen its internal resources over the next 12 months to focus on responsible investment (RI).
According to Emmanuel Bocquet, chief investment officer at LPF, to achieve this the fund is seeking to take on a “small number” of colleagues across its asset class teams, as well as growing its RI team.
In its annual report, LPF detailed that training and development for all colleagues on climate-related issues is provided. This includes governance functions, management, investment decision makers, and pensions administration colleagues. This creates an internal culture that’s serious about the risks to capital posed by the low carbon transition, as well as the physical risks of climate change, it said.
LPF added that during the year it already recruited 17 new colleagues across a variety of roles, including appointing Bocquet as CIO, and Alan Sievewright as chief finance officer.
Results
According to the annual report, the total cost outturn for LPF was £14.2m against a budget of £16.4m, meaning the fund underspent on its administration expenses by £2.2m (13.4%).
This was broken down into investment managers’ fees where LPF underspent by £1.3m, while other third party payments were worth £709,000; supplies and services with a £287,000 underpend; and income with a £410,000 under recovery.
Moving onto income, LPF received £294m in contributions in 2022/23 and is projected to receive £290m for 2023/24. It projects an expenditure of £308m in 2023/24, versus £315m in 2022/23.
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