(May 2, 2014) — The CIO of the largest London local authority pension fund investor has left after more than two years in the role, aiCIO can reveal.
Alex Gracian left the London Pension Funds Authority (LPFA) late last month, according to sources close to the fund. Gracian could not be reached for comment, but it is understood he has left to pursue new challenges.
He joined the fund in 2012 under the stewardship of then CEO Mike Taylor, who also left the fund last year. Gracian has considerable financial experience in both the investment banking and asset management sectors. He spent five years with a Middle Eastern bank before joining the pension fund.
In April, the LPFA revealed that since 2010 its funding level had risen from 81% to 91% by March 31 2013. Its assets at that stage were £4.6 billion. The fund’s investment return over 2012/2013 hit 12.6%, according to the fund’s own figures.
The fund’s investment activity has become more sophisticated in recent years, including its first ever private equity co-investment, completed last year, which saw it team up with Swiss private equity manager Adveq to buy a stake in postal company Secured Mail.
The LPFA invests the retirement assets of several London boroughs and carries out administration functions for many others. The organisation—and its leadership—has also been instrumental in pushing for a merged or cooperative system of managing assets and administration across all London pension funds.
The new CEO, Susan Martin, has set about creating an enlarged in-house investment team under the stewardship of chairman—and City supremo—Edmund Truell, who joined the fund at the start of 2013.
Truell was appointed by London Mayor Boris Johnson to lead the LPFA board. Since that point the fund has seen a number of shake-ups in terms of asset allocation, investment objectives, and staff turnover.
At the time of Truell’s selection, Johnson said: “This appointment will give further impetus to the LPFA to deliver value for money for Londoners, provide long-term sustainable provision for its members and to explore new ways to invest funds including in London’s infrastructure.”
Martin confirmed the departure to aiCIO and thanked Gracian for his efforts at the LPFA.
“We are seeking a talented individual to build on the strong foundations we now have in asset and liability management,” she added. “We are proud of our investment performance and our effective liability management.”