Levelling up:
Can LGPS capital be a ‘force for good’ in the UK?

The UK Government has encouraged institutional investors to support its levelling up ambitions. In setting out its levelling up plan, the Government specifically mentioned the c.£320 billion LGPS:

“…the Prime Minister and Chancellor have called on the UK’s institutional investors to seize the moment for an “Investment Big Bang” to boost Britain’s long-term growth. The UK Government will go further and work with Local Government Pension Funds to publish plans for increasing local investment, including setting an ambition of up to 5% of assets invested in projects which support local areas.(1)”

This insight looks at

  • The potential role the Local Government Pension Scheme (LGPS) could play in levelling up in the United Kingdom. 

  • Levelling up as a concept, rather than a political term. We explore practical approaches for LGPS investors to contribute towards levelling up.

  • Social impact infrastructure as a compelling opportunity for LGPS investors to use their capital as a ‘force for good’, without compromising on their fiduciary duty to members. 

More Thought Leadership

European Fund Survey

We asked European pension fund professionals, who collectively oversee €324 billion in assets, questions about their investments.

The Liquidity Kink Revisited

In 2022, we wrote about a feature of the pensions risk transfer market we termed ‘the liquidity kink’. A year on, many pension schemes can now afford to buy-out with an insurer, yet schemes still hold illiquid assets.