SPP warns against ‘set and forget’ investment strategy approach
Author: LAPF Investments | Published: January 2, 2026
The Society of Pensions Professionals (SPP) has raised concerns about new investment strategy rules set out in the government’s Fit for the Future consultation.
It was responding to rules which would require an administering authority (AA) to set its fund’s investment strategy once every three years, alongside the actuarial valuation, and would not be reviewed or revised in the interim period.
The professional body said that, while the investment strategy is designed to be appropriate in the medium to long term, it should not be a “set and forget” approach in the intervening three-year period.
The SPP emphasized that AAs will want to continuously monitor their investment strategy, as they currently do, to ensure it remains flexible and appropriate to adapt to things like the prevailing market conditions and emerging opportunities.
Additionally, SPP raised concerns about rules that an AA may only participate in one asset pool company at any time. While this may promote administrative simplicity, this restriction could inadvertently limit the ability of AAs to access specialised investment offered by multiple pools.
SPP is seeking clarification on whether this regulation precludes an asset pool company from collaborating with or holding assets via another pool company. This would preserve inter-pool cooperation and ensure AAs retain access to diversified strategies while complying with the “one pool” rule.
Kirsty McLean, chair of the SPP’s public sector committee, said: “The SPP’s response to the original consultation on this subject 12 months ago set out our concerns with much of what was being proposed and we are pleased to see there has been some movement on these.
“As we made clear in our response this week, we hope that our constructive comments prove helpful in ensuring that government policy intentions are met as best as possible and that unintended consequences are minimised.
“We recognise that a sustainable LGPS is in the best interests of scheme members, employers and local taxpayers and that it can be a major source of domestic investment. The LGPS continues to play a unique role in supporting the economic development of local communities.”
