LGPS Central, one of the eight local government pension schemes (LGPS) in the UK, has reported an increase in assets under management (AUM) to £44.9bn (€51.8bn) in the last 12 months from £29.9bn the previous year.
Of the £44.9bn, LGPS Central stated that £11.1bn is invested in the UK, with the pool providing oversight and stewardship for more than £11bn in partner funds’ passive assets managed by Legal & General (L&G), thereby taking total assets under stewardship to over 70% of partner funds’ portfolios.
LGPS Central launched the £11bn passive oversight and stewardship mandate with L&G earlier this year, introducing a UK-first pooled voting structure. This was done to strengthen transparency, streamline oversight and deliver greater real-world impact through unified stewardship.
The pool also revealed it has delivered £115m in gross cost savings for its partner funds since inception, with projected total gross savings of £372m by 2033/34. Net savings banked to date stand at £31m, a figure which is increasing by more than £15m per year.
It added that investment performance remains strong, with 78% of actively managed listed assets in funds that have outperformed their benchmark, adding significant value for its partner funds.
David Kane, interim chief finance officer, said: “Our purpose is to deliver long-term value for partner funds and their scheme members. This year, we demonstrated both strong growth and value for money, with over £115m of gross savings banked so far, investment performance that supports partner fund objectives, and improved governance through our oversight of £11bn in partner fund passive assets.
“We will continue to ensure that pooling delivers real and measurable benefits for our Partner Funds, and in turn, the members and communities that they serve.”
Consolidation
Earlier this year, members of investment pools ACCESS and Brunel Pension Partnership were told to find a new home after the pools’ “fit for the future” consolidation proposals were given a red light. This saw Wiltshire, Hampshire, Isle of Wight, Norfolk, and Suffolk declare they wished the local authority pension funds to join LGPS Central.
If the member funds do join the preferred pool, approximately £25.7bn could be added to LGPS Central’s AUM. The pool is currently working with its existing partner funds to consider the next steps.
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