Reacting to the publication on Thursday 29 May 2025 of the Pensions Investment Review report and LGPS Fit for the Future consultation review, Chris Rule, Chief Executive Officer, Local Pensions Partnership Investments, said:

“Today’s announcements signal a clear path forward for LGPS pooling. We support the government’s push for greater consolidation and agree that encouraging pension fund investment in growth assets can drive better outcomes for members, employers and taxpayers. It is also welcome to see ministers be clear and specific on the timings of reform, signalling that once these changes are implemented, the pensions sector will be left to focus on delivery without the prospect of further changes on the horizon.

“New asset pooling standards confirmed in the Fit for the Future consultation response will help the LGPS to meet its full potential, but we must stress the importance of partner funds within pools retaining sovereignty over their funding and investment strategies, including discretion over risk appetite, return targets and strategic asset allocation. In our experience, this approach allows pools to act in the best interest of partner funds and their members, while achieving the scale needed to access investment opportunities most effectively.

“We also fully agree that partner funds should be able to define what they mean by local investing and collaborate with local government to set their own, appropriate targets. We’re investing heavily in local projects across the UK because we’ve identified good opportunities aligned to our partner funds’ objectives. Further local investment by the LGPS – whether that be in infrastructure, social housing or local businesses – is best encouraged through supply side reform, which is why it is good to see boosting the UK’s pipeline of investable opportunities feature prominently in the Pensions Investment Review.” 

ENDS

Note: Local Pensions Partnership Investments Ltd (LPPI) is authorised and regulated by the Financial Conduct Authority (FRN 724653).