Published: January 21, 2025
We are pleased to announce a significant uplift in the assets we manage as we our Partner Funds have appointed us to provide oversight and stewardship services for over £11 billion in passive funds managed by Legal & General (L&G), previously overseen directly by Partner Funds.
From January 2025 this takes the volume of assets we are responsible for to over £43 billion.
The arrangement brings in excess of £11 billion of assets under LGPS Central’s stewardship which means that we now oversee over £23 billion across passive funds, including internally and third-party managed equity and fixed income strategies.
Welcoming this development, Cheshire Pension Fund, commented, “The pass-through voting mechanism is particularly innovative, granting LGPS Central significant influence over governance and sustainability matters by unifying the voting process, delegated to LGPS Central, for all Partner Funds”.
Our CEO, Richard Law-Deeks, said “The agreement represents a significant advancement in our assets under stewardship, supporting Partner Funds in building on the historic joint procurement. This collaboration sets a benchmark for stewardship and cost-effective management”.
“It amplifies our impact and ensures a unified approach to governance across all Partner Funds.”
Prior to LGPS Central’s formation, six of LGPS Central’s Partner Funds, alongside Warwickshire Pension Fund, procured passive investment services from L&G. The pool’s two additional Partner Funds maintained long-standing relationships with L&G which collectively manages over £11 billion in assets for LGPS Partner Funds. Under the new agreement, effective from early January 2025, LGPS Central Ltd will oversee these funds on behalf of all eight Partner Funds, conducting semi-annual review meetings with L&G. Notably, we will also vote the underlying holdings in listed equity funds based on the Company’s Voting Principles, an innovative arrangement among LGPS pools that will align the voting decisions across Partner Fund equity holdings (even when positions are held in pooled funds), significantly enhancing our stewardship and engagement impact on behalf of Partner Funds.
The implementation of this arrangement reflects the collaboration of all eight Partner Funds, demonstrating the strength of our partnership model. While in-house passive capabilities remain robust, the partnership with L&G will enhance expertise and support tailored strategies for Partner Funds’ needs.
