LGPS funds doubt enough local investment opportunities exist
Published: November 6, 2025
More than half (53%) of LGPS funds have low confidence that there are enough local investment opportunities in their authority.
The findings, based on consultancy Hymans Robertson’s latest annual report on LGPS funds, also suggest only eight percent feel there will be enough local investment opportunities in their pool.
More encouragingly, 35% of funds have already prepared a local investment strategy to help them meet the government’s Fit for the Future investment ambitions. It also shows that 42% are somewhat confident in their own capacity to implement local investment.
The report does, however, highlight something that has been a common concern when funds discuss Fit for the Future – namely that there is confusion about the definition of “local investment”.
When asked, most (48%) define it as anywhere in the pool’s authority area, 23% focus on their own administering authority and 12% look to UK-wide opportunities.
Meanwhile, 58% expect to allocate anywhere between zero and five percent of assets to local investment, with only 25% targeting between five and 10 percent.
Hymans Robertson’s head of LGPS investment Iain Campbell said: “Our survey shows that the LGPS is ready to embrace local investment, but there is no avoiding that there’s a complex journey ahead.
“The average expected allocation of 4.6% which is around £18bn shows real intent, but the diversity in definitions and approaches may lead to challenges in pool implementation.
“Collaboration will be key. Nearly half of funds want to work closely with local authorities and pools, but there is variation in successes to date that needs to be reflected on, so all on the journey can achieve parity.
“So, while there is definitely a lot of work to do to ensure alignment, the good thing is the pending March 2026 deadline should add impetus to conversations that support alignment in this area. The focus between now and then should be on the basics, ensuring that collaboration and learnings are shared.
“This will help funds to ensure that they can take the opportunities that are right for them and still meet their fiduciary duty requirements.”
