LGPS Central, one of the asset pools created by Local Government Pension Schemes, is expecting to hit £100bn in total assets after it confirmed six new partner funds this week.
The new partner funds have signed a memorandum of understanding, formalising a process that began in April after the government ordered the ACCESS and Brunel pools to shut down.
The six LGPS funds include former Brunel members Gloucestershire, Oxfordshire, and Wiltshire. The latter became the first LGPS fund to announce its intended new home in July. Former ACCESS members now moving to LGPS Central include Hampshire, Norfolk, and Suffolk.
Between them, the six funds have more than £30bn in assets, according to data from PensionsPerformance.com.
Subject to legal agreements and regulatory approval, LGPS Central will become responsible for managing the assets of 14 local authority pension schemes, covering nearly 5,000 employers and more than 1.6 million scheme members.
“LGPS Central offers a strong cultural and strategic fit, and we are confident that this partnership will deliver long-term value for our members and employers.”
Matthew Trebilcock, Gloucestershire Pension Fund
Matthew Trebilcock, head of Gloucestershire Pension Fund, said: “This pivotal moment for our fund. LGPS Central offers a strong cultural and strategic fit, and we are confident that this partnership will deliver long-term value for our members and employers. We look forward to working closely with our new partners to shape the future of pooled investment within the LGPS.”
Joanne Segars, chair of the board at LGPS Central Limited, said the development marked a major milestone in the evolution of LGPS asset pooling.
She added: “The decision by six prospective partner funds to join us is a clear endorsement of the robust investment platform, responsible investment focus, and collaborative culture we’ve built alongside our current partner funds. Together, we will continue to deliver scale, value, and sustainable outcomes for all our partner funds, their participating employers and scheme members.”
Isle of Wight decision delayed
In its announcement, LGPS Central said that conversations were “ongoing” with the £810m Isle of Wight Pension Fund to “support its governance process”, as it has yet to confirm its pool preference.
The pension fund initially declared that LGPS Central was its preference in an announcement in August, alongside the Hampshire, Norfolk and Suffolk funds. However, at a subsequent committee meeting, councillors responsible for the pension scheme voted against the decision.
LGPS Central stated that “further updates will be provided as the position develops”.
In the Pension Schemes Bill’s provisions relating to the LGPS, the government has given itself the power to select a pool on behalf of a fund if no decision is made.
