LGPS Central delivers investment management, stewardship and advisory services to eight partner funds across the central region with total assets of £64 billion, fostering the long-term growth and sustainability of their investments.
LGPS Central reports strong growth and value for money in Annual Report
LGPS Central has published its Annual Report and Financial Statements for 2024/25, highlighting a year of significant progress across pooling, investment performance, and responsible investment.
Assets under stewardship rose sharply to £44.9 billion, up from £29.9 billion the previous year, with more than £11 billion invested in the UK. A major milestone was the launch of the £11 billion passive oversight and stewardship mandate with L&G, which introduced a UK-first pooled voting structure. This innovation enables partner funds to exercise a consistent and more powerful voice in corporate engagement, streamlining governance while strengthening stewardship impact.
Delivering tangible financial benefits remains central to LGPS Central’s purpose. Since inception, the pool has achieved £115 million in gross cost savings, with total savings projected to reach £372 million by 2033/34. Net savings already stand at £31 million, growing by over £15 million annually. Investment outcomes were also strong, with 78% of actively managed listed assets outperforming their benchmarks.
Responsible investment continues to underpin the pool’s approach, with 100% of funds awarded RI Integrated Status. Engagement with 174 companies during the year reinforced the long-term perspective taken on behalf of scheme members.
Commenting on the report, Chief Executive Richard Law-Deeks said: “Pooling is about more than scale. It is about delivering long-term value and meaningful savings for our partner funds.”
Stewardship and climate risk
Our stewardship efforts are geared towards encouraging companies to think beyond quarterly results and proactively manage risks to their business models, including those posed by climate change. Climate scenario analysis consistently points to an orderly transition to a low-carbon economy as the most favourable outcome for long-term returns. Recognising this transition as central to our responsibilities, we view it as an integral part of effective investment stewardship.
We have continued to evolve our Climate Risk Monitoring Service, integrating forward-looking metrics and expanding private market coverage to better inform decision-making. Development of our Net Zero Dashboard is also underway and will form the basis of our next Net Zero update report.
Key facts
- c.£45 billion Assets under our stewardship (over 70% of partner fund portfolios)
- c.£64 billion Collective assets of partner funds
- £115 million Cost savings delivered to date
- £372 million projected by 2033/34
- 100% Responsible Investment Integrated Status
Further reading
LGPS Central achieves “best-in-class” PRI scores
Isle of Wight supports “in principle” decision to join LGPS Central
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