LPPI has delivered £250.9 million in net cost savings since launching in 2016

• This exceeds its target of delivering £200m in net cost savings by 31 March 2025 by 25%
• Annual net cost savings in the year to 31 March 2025 rose to £49.2 million (vs. £48.5 million in the year to 31 March 2024)
• This comes as LPPI welcomes six new partner funds, bringing its total assets under management to an estimated £55bn

Local Pensions Partnership Investments (LPPI) has exceeded its £250m cost savings as it increases the net annual savings for its Local Government Pension Scheme (LGPS) partner funds for a ninth year in a row. LPPI increased its annual net cost savings to £49.2m million in the year to 31 March 2025, up from £48.5 million during the same period in 2024.

This means the pool has now delivered increasing annual cost savings for its partner funds every year since 2018 and saved them a total of £250.9 million since inception – exceeding its initial target of delivering £200m in net cost savings by 31 March 2025 by 25%.

LPPI’s savings have come from making direct and co-investments through its in-house management capabilities, and from the economies of scale that its pooling model delivers. This is particularly true of private market assets where scale has meant more cost-effective access to investments and an enhanced ability to negotiate lower fees.

LPPI’s scale is set to increase further as six new LGPS partner funds – the Devon, Avon, Dorset, Somerset, Cornwall and Environment Agency pension funds – join the pool as part of the next stage of the Government’s ‘Fit for the Future’ process. Following their integration, LPPI’s total assets under management (AUM) rise to an estimated £55 billion.

Chris Rule, Chief Executive Officer at Local Pensions Partnership Investments, said: “This achievement is testament to the expertise of our team, the success of pool collaboration and the strength of our Whole Scheme Management model. By partnering with our clients to manage all of their assets, we’ve been able to maximise the advantages of scale right from day one. Welcoming new partners will position us to access new opportunities and deliver further efficiencies which help to support a stable, affordable LGPS for the benefit of members, employers and taxpayers.”

For more information please contact:
Aisha Sodawala, Citypress (on behalf of LPPI)
0161 235 0311 / [email protected]