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LGPS Central

PRI reporting framework 2020

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Basic information

OO 01. Signatory category and services

01.1. Select the type that best describes your organisation or the services you provide.

01.3. Additional information. [Optional]

LGPS Central Limited (LGPS Central) is authorised and regulated by the Financial Conduct Authority (FCA) as an asset manager and operator of alternative investment funds. The Company is one of eight Local Government Pension Scheme Pools in the UK and manages the assets of eight local government pension funds in the Midlands (UK). LGPS Central was formed in April 2018 and is owned equally by all eight of its Partner Funds and is dedicated solely to the management of local government pension assets. The aim of the Company is to use the combined buying power of its Partner Funds to reduce costs, improve investment returns and widen the range of available asset classes for investment – all for the benefit of local government pensioners, employees and employers. LGPS Central Partner Funds have combined pooled assets of circa £45 billion. At the time of submitting this report, LGPS Central manages circa £18 billion of assets directly and under advisory agreements with individual Partner Funds. For the reporting year (2019) we report on circa £9 billion of assets held in the pool under an Authorised Contractual Scheme (ACS) fund structure invested in listed equities. More ACS funds are being launched in 2020 across asset classes and will be reported on to the PRI in 2021. 


OO 02. Headquarters and operational countries

02.1. Select the location of your organisation’s headquarters.

United Kingdom

02.2. Indicate the number of countries in which you have offices (including your headquarters).

02.3. Indicate the approximate number of staff in your organisation in full-time equivalents (FTE).

64 FTE

02.4. Additional information. [Optional]


OO 03. Subsidiaries that are separate PRI signatories

03.1. Indicate whether you have subsidiaries within your organisation that are also PRI signatories in their own right.

03.3. Additional information. [Optional]

LGPS Central is fully owned by its eight Local Authority Pension Scheme Partner Funds who are joint shareholders and clients of LGPS Central. Since inception of LGPS Central in April 2018, assets are gradually being transferred from Partner Funds to the pool and over time it is expected that the vast majority of assets will sit within LGPS Central. LGPS Central reports to the PRI on behalf of all Partner Funds. One of LGPS Central's Partner Funds, West Midlands Pension Fund, has historically been a PRI member. 


OO 04. Reporting year and AUM

04.1. Indicate the year end date for your reporting year.

31/12/2019

04.2. Indicate your total AUM at the end of your reporting year.

Include the AUM of subsidiaries, but exclude advisory/execution only assets, and exclude the assets of your PRI signatory subsidiaries that you have chosen not to report on in OO 03.2
Total AUM
trillions billions millions thousands hundreds
Currency
Assets in USD
trillions billions millions thousands hundreds

04.5. Additional information. [Optional]

LGPS Central reports to the PRI on assets held in the pool under an Authorised Contractual Scheme (ACS) fund structure. As per December 2019, LGPS Central has launched six ACS sub-funds, four of which are in passive listed equities and two are in active listed equities. More ACS sub-funds are being launched in 2020 across other asset classes, which will be reported on next year.  


OO 06. How would you like to disclose your asset class mix

06.1. Select how you would like to disclose your asset class mix.

Internally managed (%)
Externally managed (%)

 

Listed equity >50% 66.61 10-50% 33.39
Fixed income 0 0 0 0
Private equity 0 0 0 0
Property 0 0 0 0
Infrastructure 0 0 0 0
Commodities 0 0 0 0
Hedge funds 0 0 0 0
Fund of hedge funds 0 0 0 0
Forestry 0 0 0 0
Farmland 0 0 0 0
Inclusive finance 0 0 0 0
Cash 0 0 0 0
Money market instruments 0 0 0 0
Other (1), specify 0 0 0 0
Other (2), specify 0 0 0 0

06.2. Publish asset class mix as per attached image [Optional].

06.3. Indicate whether your organisation has any off-balance sheet assets [Optional].

06.5. Indicate whether your organisation uses fiduciary managers.

06.6. Provide contextual information on your AUM asset class split. [Optional]

LGPS Central is set up to provide investment opportunities to its eight Partner Funds that are suited to their investment beliefs and strategies. In line with this, we inherently take a long-term approach and view Responsible Investment (RI) as supportive of risk-adjusted returns over the time horizon of Partner Fund investments. Linked to this is a view that diversification across investments with low correlation improves the risk return profile. As of submission of this report (March 2020) we offer investment opportunities to Partner Funds across listed equities, corporate bonds, infrastructure and private equity. LGPS Central Partner Funds take a view that financial markets could be materially impacted by climate change and by the response of climate policymakers. In October 2019, LGPS Central launched a Climate Multi Factor Fund which incorporates three key climate change considerations; carbon emissions, fossil fuel reserves and green revenues. This Fund has been designed to take into account the risks and opportunities associated with climate change, and at the same time achieve superior investment returns over the long-term.    


OO 07. Fixed income AUM breakdown (Not Applicable)


OO 08. Segregated mandates or pooled funds (Private)


OO 09. Breakdown of AUM by market

09.1. Indicate the breakdown of your organisation’s AUM by market.

90.4 Developed Markets
9.6 Emerging Markets
0 Frontier Markets
0 Other Markets
Total 100% 100%

09.2. Additional information. [Optional]


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