London CIV expands pension pool to £64bn
With over £64bn in Local Government Pension Scheme assets now under management, London CIV has reached a significant milestone, covering 99% of assets across its partner funds in London and Buckinghamshire.
Accelerated pooling under new guidelines
A substantial increase of 66% in managed assets has occurred within a six-month period, from approximately £38.5bn in March to over £64bn by September’s end, marking a notable expansion of the pooled framework.
As part of the government’s ‘Fit for the Future’ reforms, Local Government Pension Scheme administering authorities must assign investment strategy implementation to their respective pools and place all assets under pooled management, as outlined in statutory guidance that took effect this year, contributing to the consolidation of the LGPS into six asset pools.
The £38.5bn figure reported in March consisted of assets that were either already pooled or considered pooled, and London CIV currently collaborates with 33 partner funds across London and Buckinghamshire, following Buckinghamshire’s integration into the pool earlier this year.
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New agreements for investment management have been established between London CIV and its partner funds, introducing a revised oversight and reporting framework, and after 18 months of collaboration, the LGPS’s first ‘Responsible Investment Matrix’ has been developed to accommodate varying responsible investment priorities within the pooled structure.
This rapid consolidation shows a significant shift in the management of public sector pensions, driven by the centralization of investment decisions to reduce costs and enhance access to sophisticated investment strategies that would be unaffordable for smaller funds independently.
Enhanced capabilities and investment scope
In addition to assuming oversight of more assets, London CIV has developed new capabilities to support the next phase of pooling, including an in-house strategic asset allocation capability, completion of an investment advice pilot, and the introduction of quarterly reporting across both pooled and non-pooled assets, as well as new working groups for partner funds.
New Investment Offerings and Strategic Initiatives
London CIV launched its Core Global Equity Fund and expanded private-market opportunities alongside governance changes. More than £1.7bn is now invested across affordable housing, infrastructure, renewable infrastructure, and natural capital. Over £530m is in affordable housing and around £950m is in infrastructure and renewable infrastructure.
