LGPS funds hand stewardship over £11bn to pool
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The partner funds of LGPS Central have mandated the asset pool to provide oversight and stewardship for £11bn of passive investments.
The £11bn worth of investments managed by Legal & General Investment Management were previously directly overseen by six local authority funds, while two funds also had a relationship with the manager. The shift, effective this month, brings LGPS Central’s assets to more than £43bn. LGPS Central now oversees over £23bn in passive funds, including internally and third-party managed equity and fixed income strategies.
The pool will conduct semi-annual review meetings with LGIM and vote the underlying holdings in listed equity funds based on the company’s voting principles, aligning the voting decisions across the partner funds’ equity holdings, including in pooled funds.
“The pass-through voting mechanism is particularly innovative, granting LGPS Central significant influence over governance and sustainability matters by unifying the voting process, delegated to LGPS Central, for all partner funds,” said Cheshire Pension Fund, one of the eight local authority funds that use the pool.
Chief executive of LGPS Central, Richard Law-Deeks, said: “The agreement represents a significant advancement in our assets under stewardship, supporting partner funds in building on the historic joint procurement. This collaboration sets a benchmark for stewardship and cost-effective management.”
The £11bn worth of investments managed by Legal & General Investment Management were previously directly overseen by six local authority funds, while two funds also had a relationship with the manager. The shift, effective this month, brings LGPS Central’s assets to more than £43bn. LGPS Central now oversees over £23bn in passive funds, including internally and third-party managed equity and fixed income strategies.
The pool will conduct semi-annual review meetings with LGIM and vote the underlying holdings in listed equity funds based on the company’s voting principles, aligning the voting decisions across the partner funds’ equity holdings, including in pooled funds.
“The pass-through voting mechanism is particularly innovative, granting LGPS Central significant influence over governance and sustainability matters by unifying the voting process, delegated to LGPS Central, for all partner funds,” said Cheshire Pension Fund, one of the eight local authority funds that use the pool.
Chief executive of LGPS Central, Richard Law-Deeks, said: “The agreement represents a significant advancement in our assets under stewardship, supporting partner funds in building on the historic joint procurement. This collaboration sets a benchmark for stewardship and cost-effective management.”
