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How the Fund works

How the Fund works

Lothian Pension Fund staff are employed by an arms-length company, LPFE Limited (LPFE), which is wholly owned by the Council (in its capacity as administering authority for the Funds) and it is supervised by a board of directors chaired by the Council’s Executive Director of Resources and includes the Convener of the Pensions Committee. The team requires to carry out certain of its activities for the Funds through its Financial Conduct Authority authorised vehicle, LPFI Limited (LPFI).

LPFI is also wholly owned by the Council (in its capacity as administering authority for the Funds). LPFI is supervised by a board of directors chaired by the Council’s Head of Finance. Both the boards of LPFI and LPFE comprise an independent non-executive director (Leslie Robb). All the operations, costs and liabilities in relation to the Funds, including those of LPFE and LPFI, are borne by the Funds.

The day-to-day running of the three pension Funds is carried out by the Lothian Pension Fund group, comprising the investment and pensions team within the City of Edinburgh Council (acting in its capacity as the administering authority of the Funds), LPFE and LPFI (the LPF Group). The LPF Group’s functions includes investment, pension administration, employer liaison, data quality, customer support, accounting, legal, risk and compliance, communications and general business support. The investment responsibilities include carrying out in-house investment management and the monitoring and selection of external investment managers, as well as external facing collaborative initiatives with other like-minded pension funds.

Governance is provided through the Council's Pensions Committee.

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