- Local Pensions Partnership Investment’s annual net cost savings increased year-on-year to reach £48.5 million in the year to 31 March 2024, compared to £40.2 million to 31 March 2023
- Savings since launch of the pool reached £201.7 million, surpassing LPPI’s target of £200 million in net cost savings by 31 March 2025
- Local Pensions Partnership Investments’ pooling model demonstrates that by working with our clients to deliver scale and good governance, combined with investment advice and in-house investment expertise, the pool can contribute to significant net cost savings and risk-adjusted returns
Local Pensions Partnership Investments (or LPP Investments) increased its annual net cost savings to £48.5 million in the year to 31 March 2024, taking its total net cost savings since the pool launched in 2016 to £201.7 million, up from £153.2 million to 31 March 2023, as CEO, Chris Rule, backs the new government’s push for greater pooling of pension fund assets.
The surge in net cost savings means that LPPI has reached its target of delivering net cost savings of £200 million a full year early.
Savings were driven by a range of factors, including lower fees negotiated with external managers and growing portfolio of direct investment and co-investment which complements allocations to external managers.
Chris Rule, Chief Executive Officer at Local Pensions Partnership Investments, says:
“Each year we’ve been able to deliver greater net cost savings for our clients largely due to having pooling scale from the outset. Managing all clients’ assets under our Whole Scheme Management delegated model since inception means they have all benefited from scale, flexibility and agile decision making.
“It’s encouraging that LGPS, and the broader UK pensions sector, is being acknowledged across the political spectrum for the integral role it plays in supporting the development of a sustainable economy. By managing 100% of our client’s assets, we are able to drive long-term risk-adjusted returns. If this is echoed across the LGPS, greater pooling of funds could help to deliver scale and better cost savings.”
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