Published: March 18, 2025
The Local Government Pension Scheme (LGPS) has undergone significant transformation over the past decade, with pooling of investments a key part of this evolution. Since our inception in 2018, LGPS Central Limited has grown to manage and oversee over £45bn in investments across eight Partner Funds. As one of the eight LGPS pools, we are committed to collaborating with our Partner Funds to deliver for members. The Government’s LGPS: Fit for the Future proposals mark the next stage in this journey, setting out an ambition for greater delegation and an acceleration of pooling.
Working in Partnership
Collaboration is at the heart of our approach. Our Fit for the Future plan has been developed with input from our Partner Funds and through extensive engagement with stakeholders. We understand the complexities involved in the transition, from ensuring fiduciary duty is met, investment performance is maintained and value for money is delivered.
We support our Partner Funds retaining responsibility for setting their investment strategy and strategic asset allocation, while we will take on a greater role in advising on and implementing these strategies on their behalf. To support this transition, we will develop a dedicated Investment Solutions Team to curate strategic investment advice tailored to the needs of each fund.
Delivering the Next Stage of Pooling
Our transition plan outlines a phased approach to transferring all listed assets to the pool and granting LGPS Central Limited full delegated authority over illiquid investments via discretionary agreements. This will ensure that investments are managed efficiently without incurring unnecessary transition, tax and legal costs.
We will also strengthen our internal capabilities by expanding our team and investing in tools and technology. As our assets under management grow, we expect to become an Enhanced Firm for regulatory purposes and will undertake a review of our governance structures to ensure they remain fit for purpose.
A Commitment to Local Investment
A key element of the Government’s vision for LGPS pools is to facilitate greater investment in UK growth, including local opportunities. We have already demonstrated success in this area, with over £10.8 billion of our pooled assets currently invested in the UK, which includes private market assets such as residential property and a range of infrastructure opportunities.
We will build on our established private market team and work closely with Partner Funds, established combined authorities and future strategic authorities in the Midlands as well as other regional stakeholders to identify local investment opportunities. Where appropriate, we will collaborate with other LGPS pools to share knowledge and best practice.
Looking Ahead
As we embark on this next phase, we remain focused on our core purpose: managing Partner Funds’ assets responsibly and ensuring the long-term sustainability of LGPS pensions.
For more information please view the Executive Summary of our Fit for the Future Plan .
