NSW Local Govt Super to search for own CIO

The $7 billion NSW Local Government Superannuation Scheme (LGSS) has begun a search for its first-ever chief investment officer.

Chief executive of LGSS, Peter Lambert, said recruitment firm Kennedy Austin would conduct the search – the same firm has previously conducted searches for LGSS’ investment adviser, FuturePlus Financial Services. Lambert said that LGSS’ investment strategy had diverged significantly from that of the other major FuturePlus customer, NSW Energy Industries Superannuation Scheme, and it needed a full-time advisor addressing its needs. For example unlike LGSS, the EISS has divested all of its direct property assets and does not conduct a sutainability overlay on its Australian equity portfolio. Lambert said the appointment of a CIO would allow him to devote more time to operational and strategic matters. For example, he will relinquish to the CIO his current commitments on the board of LGSS’ investee private equity firm, Hawkesbridge, and his role as LGSS delegate to the Quentin Ayers alternative investments trust established with EISS and the seafarers and stevedores’ super funds last year. Lambert said that fund had already drawn down “;about one-tenth”; of the roughly $1 billion committed to it, and made investments in distressed debt manager Oaktree Capital, venture capital manager Highland Capital, and private equity firms Bain Capital, Paul Capital and Golden Gate Capital. For its new CIO, Lambert said LGSS would look for a candidate with “;a commitment to our philosophy of sustainable investing”;.