Local investment in the LGPS: fund perspectives

The UK government’s broader pensions reforms and recent ‘Fit for the Future’ consultation outcome have set a new direction for the Local Government Pension Scheme (LGPS). There’s a clear expectation that funds will increase their commitment to local investment.

We invited LGPS heads of fund and fund officers from across England and Wales to complete an online survey. It was designed to encourage a better understanding of attitudes, ambitions, concerns and practical plans for local investment, this report distils key insights from respondents of the survey, contextualised by the market and government’s policy direction.

Some key findings from the survey are: 

• Average expected asset allocation of 4.6%, equating to around £18bn.
• Most funds are supportive of local investment in principle, but practical concerns – especially around opportunity, risk and implementation – dominate.
• Definitions of ‘local’ vary, with a trend towards broader, pool based or UK-wide interpretations.
• Appetite for local investment is tempered by fiduciary duty, resource constraints and the need for robust governance and due diligence.
• Collaboration, both within pools and with local authorities, is seen as essential but challenging.
• 35% of funds responding have a documented local investment strategy in place.

To access our report, please fill out the form below.

Fill out form

If you have any questions about anything covered in the report or on local investment, please get in touch.