Investment Pooling - LGPS Central

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In the Summer 2015 Budget, the UK Government asked LGPS funds to put forward proposals to pool investments to reduce costs significantly while maintaining overall performance. In December 2015, the Fund also announced its intention to participate in an investment pool with several other Midlands-based LGPS funds comprising Cheshire, Derbyshire, Leicestershire, Nottinghamshire, Shropshire, Worcestershire, and West Midlands Integrated Travel Authority pension funds. This will create a multi-asset investment pool of £35 billion in size, meeting the scale sought by the UK Government in its investment pooling criteria for the LGPS.

In July 2016, the nine Funds submitted a business case to the Department for Communities and Local Government (DCLG) with the proposal for the LGPS Central pool. This was subsequently formally approved in November 2016.

The collaboration will aim to deliver cost savings and to build on the individual partner Funds' strong investment performances by providing scale, increased resilience, knowledge sharing and robust governance and decision-making arrangements. The new investment pool will offer access to both internal and external investment management.

Partner Funds will continue to retain their separate identities and local accountability. The collaboration will offer an equal say in the oversight of the new entity to each participating Fund.

LGPS Central Ltd will offer access to both internal and external investment management. The FCA approval for both the company as operator and the first three sub-funds (passive internal equities) was received early in 2018. 

What this means for our members 

The pooling of investments has no impact on your benefits. Pensions for members of West Midlands Pension Fund (WMPF) and West Midlands Integrated Transport Authority (WMITA) will continue to be administered by West Midlands Pension Fund.

We want to assure you that the quality of our service and our commitment to ensure that we are contributing together for your future will always be at the forefront of our work as we move forward with these changes.

If you have any enquiries, feel free to write to us by email at wmpfcommunications@wolverhampton.gov.uk or by post:

West Midlands Pension Fund, PO Box 3948, Wolverhampton, WV1 1XP.

For more information, please read the following question and answer guides, provided by the LGPS:

Information for our Members  LGPS Q&A pooling members [229kb]                   

Information for Employers  LGPS Q&A pooling employers [231kb]