Episode summary
Episode 3: Bonus: Always a Pensions Angle Collaboration: Peter Wallach - From Powerhouse to Progress
The Fiftyfaces Podcast
· · Hosts: Aoifinn Devitt · Guests: Peter Wallach
Summary
Peter Wallach argues that Northern LGPS is facing a more disruptive transition than many other pools because it is effectively starting from scratch. He says the most fundamental issue is building an FCA-authorized entity, moving Northern straight from collaboration into what he calls pooling 2.0, while other pools are already further along. He frames the next phase as both an operational build-out and a governance redesign, with work streams, new hiring, and a board and executive still to be put in place.
He says Northern’s three partner funds have already done well in private markets, including NPEP, co-investment with HarbourVest, and collaborative work in property, private credit, infrastructure and GLIL. On public markets, he expects fewer obvious cost savings, but still sees room for some efficiencies as the pool consolidates larger mandates. He also says local investment remains important, but the three funds still need a common approach.
On strategy, Wallach says Merseyside has already gone far in private markets and wants more income-producing assets, while natural capital remains attractive for both returns and sustainability reasons. He is cautious on rigid net-zero targets, says stewardship has largely moved to the pool, and expects advice and cash-flow management to shift more fully to the pool as well.
Key takeaways
- Peter Wallach says Northern LGPS must build an FCA-authorized entity before it can operate as a fully regulated pool.
- Wallach says Northern has been successful in private markets, with NPEP now having more than 3 billion of commitments and 2 billion at work.
- He expects collaboration between pools, including housing work with LPP and potential links with DC master trusts, to be the main way to deliver government objectives.
- Wallach says Merseyside wants more income-producing assets and sees natural capital as both a sustainability tool and an investable asset.
- He says net-zero targets should be ambitious but not too rigid, and that stewardship has effectively shifted from the fund to the pool.
Notable quotes
“Clearly, the most fundamental matter for us to address is the need for an FCA authorized entity”
“I look at the other pools and there's a lot going on for them”
“we're at ground zero and we need to go straight into pooling 2.0, which is a very big step for us”
“So in a sense we are 3626 and 16 in terms of of assets under management”
“I think collaboration between pools will be the most effective way of delivering the government's agenda”
How the episode opens
The next podcast is another podcast brought to you as part of our special bonus series produced in connection with Always a Pensions Angle by DG Publishing. This next podcast features Peter Wallock. Peter Wallak is another legend on the LGPS circuit at the helm of Muryside Pension Fund for many years.
He's always had a particularly thoughtful approach to local government investing and we hear from him about what pooling means and what the future holds. Hey, hey, hey. Hello, ladies and gentlemen, and welcome to the second of a fivepart series.
We're running in partnership with the 50 Faces podcast. I am of course Thomas Parker. I'm joined by my partner in crime, Mr.
Nick Reev. Hello, Tom. Uh, I like to think of myself as everybody's partner in crime.
Although, your honor, for legal reasons, I should probably state not actually.
Absolutely not. Um, yes, second part of the of our of our series. Really interesting interview we've got coming today. Um, we're joined by Mr. Peter Wallock. We're hearing from Mr. Peter Wallock. Very interesting to hear his thoughts on all things pooling and how it's everything's evolving.
Yeah, exactly. I think um uh without wishing to kind of spoil anything, but I think Northern has been on a slightly different journey to a lot of the other pools um and uh you know, a different stage to a lot of the other pools. They've all had different paths, but you know, Northern in particular, I think, is a slightly different beast at the moment.
So, be interesting to get his uh perspective on how all that's playing out. Absolutely. Well, Peter sat down once again with Ethan Devit, host of the 50 Faces podcast at the recent Lapsith February event.
And Ethan started by asking Peter, following the guidance in the form of regulations we've received from the government, what needs to involve at the Northern LGPS pool to make sure that it meets the requirements of the new demands of pooling.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- lgps pooling
- pensions collaboration
- responsible investment
- dc master trusts
- responsible investment milestones
Companies and tickers mentioned
- Merseyside Pension Fund
- GLIL
- LPPI
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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The Fiftyfaces Podcast, this episode and its artwork belong to Aoifinn Devitt. Octagon is not affiliated with the show; this page is an independent summary.
