Our CEO, Chris Rule, says he is optimistic about LPGS reforms, which would help achieve greater scale and improved costs-savings whilst individual funds retain strategic sovereignty.

The comments follow LPPI’s response to the government’s consultation on LGPS investment pooling to make them ‘Fit for the Future’.

Chris Rule, Chief Executive Officer, Local Pensions Partnership Investments, says:

“There’s been some concern in the sector that greater consolidation, and stronger government direction on investment management standards and processes, could mean a loss of control for LGPS funds. We don’t see it that way and this hasn’t been the experience of our partner funds.

“The consultation signifies a clear path forward for LGPS pooling. By setting common standards, aligning investment expertise with decision making, and encouraging further collaboration, the proposals aim to drive greater scale and efficiencies that will ultimately drive better outcomes for LGPS members and employers, and taxpayers.”

LPPI adopts an approach researched as a best practice, internationally recognised model, versions of which have already been used successfully in global pension fund markets including the UK, New Zealand, Australia, Canada and the US.

LPPI is responsible for managing £26.7bn of LGPS fund assets (as at 31 December 2024), including 100% of assets on behalf of our three whole scheme management clients. We understand LPPI is the only pool that currently satisfies the key requirements of the consultation – it is FCA regulated, provides investment advice, has internal investment teams and manages legacy and local investments. All of which we have been doing since 2016. LPPI also proactively collaborates with peers within GLIL Infrastructure and The London Fund.

Rule added:

“With strong leadership, proactive collaboration and timely action, these changes can make LGPS pooling fit for the future while supporting pension fund committees to achieve their strategic goals and maintaining democratic accountability.”

“The LGPS was created to make sure that public service pensions are paid when they are due. It’s the responsibility and sole purpose of the funds and pools to make this happen whilst working to ensure employer contributions are as stable and affordable as possible.”

A summary of our consultation response is available here.

You can also read the full consultation reponse here.