London Councils has appointed Hugh Grover as chief executive of the London Collective Investment Vehicle (CIV).
Mr Grover, previously director of local government finance policy at London Councils, will take up his role immediately.
He has led the organisation’s work on creating a vehicle through which London boroughs’ pension funds can invest together in order to negotiate lower fees from investment managers.
Mr Grover’s appointment marks the next stage in the implementation of the CIV, which appointed Northern Trust for global custody services earlier this year and, according to some estimates, could save participating local government pension funds 20% in investment management fees per year. All thirty-three London pension funds, including the City of London Corporation, have signed up to take part.
Jules Pipe (Lab), chair of London Councils and mayor of Hackney, said: “The formation of our CIV is already reducing the cost of local government pensions. Its operation will realise significant savings for the London boroughs while maintaining their local discretion over investments.
“Hugh brings to the role commitment and expertise as well as the confidence of London local government and the broader pensions and investment community.”
Mr Grover said that over the coming months he will recruit a “first class team” to “take the CIV to being fully operational”.