Northern LGPS is a collaboration between the Greater Manchester Pension Fund, Merseyside Pension Fund, and West Yorkshire Pension Fund. Together, they manage over £61 billion in assets, making it one of the largest LGPS pools in the UK. The pool aims to deliver cost savings, improved governance, and better investment outcomes for its members, with a strong commitment to manage investment.
Performance
As of 31 March 2024, the combined assets of our funds totalled £61.4 billion, The scale of our funds enables our in-house investment teams to manage more than £18 billion in listed equity bonds and cash and nearly £17 billion in unlisted assets, including property, local investments, private equity, private credit and alternatives. We also have over £26 billion invested in the UK. The balance of our assets are managed externally.
Investment Benchmarking Results for the 10-year period ending March 31 2024
Analysis of the 2023/24 data indicates that the Northern LGPS remains low cost and is below the median (average) cost of its peer group (which consisted of 19 global pension funds (inclusive of Northern LGPS) ranging from £12.5 billion to £146.1 billion).
In 2014/15 CEM calculated Northern LGPS’ benchmarked costs to be 0.35% (£112 million relative to an average pool value of £29 billion). The Northern LGPS’ benchmarked costs increased to 0.36% (£209 million relative to an average pool value of £58 billion) in 2023/24.
When adjusting for the increase in assets and changes in strategic asset allocation over the last ten years, CEM calculated that Northern LGPS’ like for like costs would be 0.60% (£349 million) in 2023/24. On this basis, Northern LGPS had generated underlying savings of 0.24% (£140 million) in 2023/24.
Stewardship Report for Q1 2025 published
The report sets out that the focus of our stewardship activities has been on conflict-affected and high-risk areas, engagement highlights include an assessment of ESG rollback along with company specific engagements such as Shell & BP and, finally, a summary of our voting activity over the quarter.
Portfolio update
We have maintained our strong focus on direct and collaborative investments in infrastructure and private markets. To strengthen this, we committed £375 million to Heim Global Investor’s UK Residential Fund. The fund, which is managed by Heim Global Investors, an affiliate of Swedish landlord Heimstaden Bostad AB, focuses on investing in mid-market rental housing and aims to build approximately 5,000 new homes in the UK.
At 31 March 25, Northern Private Equity Partner LP (NPEP), the pool’s private equity fund, has committed capital of £3.2 billion and total net assets of £1.8 billion.
Government “supportive” of Northern LGPS Pooling business plan proposals
The government has responded to the Northern LGPS (NLGPS) business plan submission in relation to its Fit for the Future consultation launched on 14 November 2024.
In the written response from the Ministry of Housing, Communities & Local Government (MHCLG), the government expresses its appreciation for “the substantial work and thought” which has gone into producing the NLGPS proposal. The MHCLG letter also notes that NLGS has “a strong record of local investment of which you are rightly proud, and at the heart of our proposals is a determination to protect and enhance local investment by the Northern pool and indeed the entire LGPS.”
The letter confirms that MHCLG has reviewed and is “supportive” of NLGPS proceeding as it is set out, and in line with the March 2026 deadline.
Further reading
Megafunds ball back in government’s court as LGPS pools approved
Northern LGPS raises concerns over short deadlines in “Fit for the Future” consultation
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