LGPS want returns guarantee on local investment
Author: LAPF Investments | Published: July 3, 2026
There’s strong support for local investment by LGPS funds so long as members’ returns are not compromised, according to new polling.
Conducted during a webinar held by the Society of Pension Professionals, when asked whether they support the government’s proposed obligation for all LGPS funds to have “a high-level objective on local investment,” more than half (59%) said they supported the proposal only if there is no impact on investment returns.
A further 19% supported the proposal regardless of its impact on returns.
However, almost a quarter of respondents (22%) raised concerns, with 10% believing the definition of “local” is too narrow and should instead encompass UK-wide investments, while 12% said investment decisions should continue to be based solely on risk, return and ESG considerations.
The polling suggests that while the pensions industry is open to supporting local investment initiatives, protecting members’ financial outcomes remains the overriding priority.
The webinar – which brought together more than 100 professionals from across the pensions industry – also explored proposed governance, asking delegates about the challenges of attracting professional trustees to act as “independent persons” supporting LGPS pension committees.
Of those responding, 39% said remuneration may not adequately reflect the responsibility and complexity of the role.
Additionally, 34% pointed to uncertainty around how the proposed “independent person” role differs from that of a traditional professional trustee, and 27% cited the potential legal and reputational risks associated with advising committees without having full decision-making authority.
The event’s chair, SPP public sector committee deputy chair Tim Domanski, said: “This SPP polling demonstrates that pension professionals recognise the value of encouraging investment that benefits local communities, but not at the expense of members’ returns.
“Equally, proposals to strengthen governance through independent expertise are welcome, but the role must be clearly defined and appropriately recognised if it is to attract experienced professionals.”
