Benefits of pooling apparent in LGPS Central report

October, 2022 Print

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LGPS Central’s eight partner funds continue to positively pool assets, with £28.5 billion of assets now under stewardship, according to the pool’s annual report.

Pooling has now achieved cumulative net investment cost savings on launched products amounting to £42.8 million as at 31 March 2022.

Annual net investment cost savings for partner funds are now positive and accelerating with an anticipated cumulative breakeven point in 2023/24, said the report.

There are more funds being committed, and LGPS Central is confident of delivering net cost savings in excess of £250 million for partner funds by 2034.

The last year has seen £2.9 billion committed to newly-launched private market funds.

In March this year, LGPS Central launched a £1 billion Global Sustainable Equity Fund, with commitments from four of its partner funds. It intends to launch private debt, property and targeted return funds in the near future.

Chief executive, Mike Weston said: “We continue to progress our mandate of encouraging further transitions to the pool and the savings that brings. I have a firm belief that our potential benefit to our partner funds should go beyond purely economy of scale savings, by drawing together individuals with the depth and breadth of skills that we have, will see us drive positive investment performance over the long term. In the creation of a robust, forward-looking company, we ensure we are well positioned to respond to the next stage of pooling in the UK.”

Report

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