Published: September 28, 2023
LGPS Central Limited is pleased to present our Annual Report and Financial Statements for the year ending 31 March 2023. Our pension pool has made significant strides, managing over £26 billion in assets across 26 diverse investment funds, spanning both private and public markets since inception only five years ago.
One of the standout achievements of the year is the substantial cost savings we’ve generated on behalf of our eight Partner Funds. The Company has already realised a total of £64.0 million in gross cost savings, with a promising projection of £326.4 million in gross cost savings expected within the first 15 years of operation.
Throughout the financial year 2022/2023, LGPS Central we celebrated several notable successes:
Global Sustainable Equity Fund: We launched a £1 billion Global Sustainable Equity Fund, reaffirming our unwavering commitment to responsible and sustainable investing. Sustainability is at the core of our investment philosophy, and this fund underlines our dedication to making a positive impact in line with our Partner Funds Strategic Asset Allocations.
Private Markets Funds’ Growth: LGPS Central saw an influx of commitments totalling £1.15 billion for our private market funds. This increased commitment from our Partner Funds fuelled significant growth across our equity, debt, and infrastructure funds. In May 2023, we expanded our offerings by introducing a direct property fund, providing clients access to a wide range of major asset classes.
Active Stewardship: As responsible investors, we actively participated in 3,337 meetings, exercising our stewardship of the companies we own on behalf of our Partner Funds. This proactive approach aligns with our commitment to sustainable and responsible investing.
Board Strengthening: Our board welcomed Ian Armfield and Ciarán Barr as Non-Executive Directors, with Belinda Moore also joining the Board since year end, further enhancing its governance and strategic leadership.
Responsible investment and engagement (RI&E) have remained central to our mission. Our RI&E team published its third annual Taskforce on Climate-related Financial Disclosures (TCFD) report, revealing a nearly 40% reduction in financed emissions per million pounds invested since 2019. We’ve also collaborated closely with Partner Funds to help them prepare their own TCFD reports. Moreover, we are honoured to have received UK Stewardship Signatory Status for a third consecutive year, reaffirming our commitment to responsible investment practices.
In a year marked by significant progress, Interim Chief Executive John Burns reflected, “It is a crucial time for Pooling in the UK, and we remain focused on delivering real-world savings for our Partner Funds. We have achieved significant milestones since our inception, made possible through the strong partnership and support of LGPS Central’s eight Partner Funds.”
The full report can be found here.
