The Local Pensions Partnership Investments (LPPI) has grown to nine pension fund members, as six new schemes have formally signed a memorandum of understanding (MoU), bringing its total assets under management (AUM) to more than £54bn (€51bn) once integration is complete.
In September, Devon, Avon, Dorset, Somerset, Cornwall and the Environment Agency pension funds chose LPPI as their preferred LGPS pool following an extensive due diligence process.
They joined LPPI’s existing three partner funds: Lancashire County Pension Fund, the London Pensions Fund Authority and the Royal County of Berkshire Pension Fund.
The move follows the UK government’s decision in April to reject proposals by ACCESS and Brunel Pension Partnership to meet new minimum standards set out for local government pension pooling, which left 21 LGPS funds looking for a new partner ahead of the 30 September deadline.
LPPI will continue to work with all nine partner funds to ensure a smooth and efficient onboarding as equal shareholders, whilst maintaining alignment with each fund’s existing investment strategies and objectives. The formal process will be completed by the government’s deadline of 31 March 2026.
Currently, LPPI manages £26.5bn across six funds and two pooled authorised contractual schemes (ACSs) on a fully delegated basis for Greater London, Lancashire and the Royal County of Berkshire. It employs around 450 people across its operations, which includes a dedicated pensions admin operation that oversees police and fire brigade pensions for around 600,000 workers.
Ahead of the 30 September deadline, LPPI has emerged as the leading contender to take on Brunel Pension Partnership’s investment infrastructure, a former home to six of the new funds.
Brunel manages seven equity pooled funds, passive equity and private markets for 10 pension fund clients based in the West of England. LPPI is based in London and Preston, Lancashire, managing £26.5bn, according to its latest annual report.
Chris Rule, chief executive officer of LPPI, said: “This important milestone means we’re now ready to move from due diligence and planning to execution. We’re excited to work closely with our new and existing partners funds to achieve their strategic goals, all while delivering on the ambition of Fit for the Future and extending the benefits of pooling to more members, employers and taxpayers.”