Seven local government pension schemes (LGPS) with £45bn (€52bn) of total assets have signalled their intent to join investment pool Border to Coast Pensions Partnership, after being told to find a new home by the UK government.
Following a “thorough” review and “detailed” engagement with Border to Coast, seven local authority pension funds – Cambridgeshire, East Sussex, Essex, Hertfordshire, Kent, Northamptonshire and West Sussex – have entered exclusive discussions to join the pool and create a new collaborative partnership.
Border to Coast currently has 11 pension fund members – Bedfordshire, Cumbria, Durham, East Riding of Yorkshire, Lincolnshire, North Yorkshire, South Yorkshire, Surrey, Tyne & Wear, and Warwickshire – and manages circa £65bn of investments.
Bringing the assets of the seven new pension funds would elevate Border to Coast’s total assets to £110bn.
The move follows the government’s “Fit for the Future” consultation, which laid out a timeline and future requirements for LGPS funds.
In April UK ministers gave the green light to six out of eight UK local authority pension investment pools’ proposals for meeting new minimum standards set out by the government, rejecting plans put forward by Brunel Pension Partnership and ACCESS.
Key proposals included the requirement for all LGPS assets to be pooled by 31 March 2026, and for local authority pension funds to take investment strategy advice from their respective investment pools.
This means that 21 LGPS funds will need to find new pooling partners, with a final decision required by 30 September 2025.
Earlier this month, ACCESS – the current home of the seven funds intending to join Border to Coast – said its partner funds were nearing the conclusion of their internal processes to identify preferred pooling partners.
The pool at the time acknowledged that not all of its partner funds would join the same investment pool. Hampshire, Isle of Wight, Norfolk, and Suffolk councils are yet to publicly identify their preferred pooling partners.
At the end of last month, Wiltshire Pension Fund became the first of the 21 ‘orphaned’ pension funds to publicly announce its preferred pooling partner – LGPS Central – after being told to find a new home for its pooled assets.
None of the other nine Brunel partner funds – which include Avon Pension Fund, Buckinghamshire Council, Cornwall Pension Fund, Devon County Council, Dorset County Pension Fund, Environment Agency Pension Fund, Gloucestershire Pension Fund, Oxfordshire Pension Fund, Somerset Council – have yet announced their intentions.
Jeremy Hunt, of West Sussex Pension Fund on behalf of the seven LGPS funds, said: “In response to the government’s ‘Fit for the Future’ policy, each authority has undertaken a comprehensive review to determine their most suitable future pooling partnership. Following this robust evaluation, seven funds have chosen to enter exclusive discussions with Border to Coast Pensions Partnership as their preferred future pooling partner.”
He said that Border to Coast offers a “strong governance framework and a collaborative approach”, and its track record gives the LGPS funds confidence in a smooth transition and continued excellence in service delivery.
Rachel Elwell, chief executive officer of Border to Coast, added: “This decision to form a new partnership is reflective of our joint commitment to collaboration, innovation, and shared purpose.
“In coming together, we can build on the collective experience and capabilities of all funds to not only strengthen our collective voice, but enhance our combined ability to deliver robust, sustainable, and cost-effective outcomes for partner funds.”
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