LGPS urged to accelerate asset pooling

Sector called on to work together to achieve the goal of full pooling of assets

Holly Roach
clock • 1 min read
LPPI chief executive Chris Rule has called on all parties to “work together” to achieve full pooling
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LPPI chief executive Chris Rule has called on all parties to “work together” to achieve full pooling

Local Pensions Partnership Investments (LPPI) has called on the Local Government Pension Scheme (LGPS) to accelerate the pooling of assets.

The LPPI praised the benefits of pooling, as it revealed the annual net cost savings through its own pool had increased from £28.2m in the year to the end of March 2021 to £39.1m to the end of March this year. It said this has led to its net cost savings hitting £113m since its inception in 2016.

LPPI chief executive Chris Rule called on all parties to "work together" to achieve the goal of full pooling of assets.

LPPI - which was the first LGPS pool to publicise its net cost savings - has pooled 100% of client fund assets and operates pooled investment vehicles across seven asset classes.

Rule said: "LGPS pension pooling was sparked by the belief that public pension funds working together can achieve greater scale to access improved opportunities for investment and create cost savings, while at the same time ensuring the future pensions for millions of workers across the country are secure and affordable. LPPI's cost savings and performance demonstrate that pooling can and is working.

"Understanding the impact that pools are having on LGPS pension portfolios is crucial in keeping the original pooling objectives alive and enabling further innovation and an acceleration to fully realise the benefits for which pooling was intended."

He added: "Across the LGPS there is much more to do, and I encourage all in the sector to work together to achieve the goal of full pooling of assets within the respective pools."

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