Nearly nine out of ten (89%) Local Government Pension Scheme (LGPS) professionals in England and Wales say their funds are planning to increase local social investments in coming years, according to a survey from investment manager Alpha Real Capital.
One hundred LGPS professionals took part in the survey. When asked for their fund’s definition of local investing, 54% said it was within their local council area, 26% said it was UK-wide, and 20% said it was within their pool.
Alpha Real Capital said that place-based social investments aimed to deliver positive, quantifiable social outcomes in addition to attractive returns. They can help to develop infrastructure, enhance employment and increase environmental stability in an area.
Stuart Hanson, associate director for client solutions at Alpha Real Capital, said: “If only 5% of LGPS funds’ combined assets were allocated to local investment, this would unlock as much as £16bn for investment in assets that contribute towards positive social outcomes.”
His comments echoed the government’s stated target in the levelling up white paper for LGPS funds to invest up to 5% of their assets in infrastructure projects that support local areas.
—————
What’s on in 2022? Room151’s LGPS Events
FREE weekly newsletters
Subscribe to Room151 Newsletters
Room151 LinkedIn Community
Join here
Monthly Online Treasury Briefing
Sign up here with a .gov.uk email address
Room151 Webinars
Visit the Room151 channel
