Pension fund manager to oversee £11bn passive fund

LGPS Central has been appointed to oversee £11bn in passive funds, managed by Legal & General.
The asset manager will provide oversight and stewardship services for the funds on behalf of its eight Partner Funds across the Midlands.
Prior to LGPS Central’s formation, six of LGPS Central’s Partner Funds, alongside Warwickshire Pension Fund, procured passive investment services from L&G.
The pool’s two additional Partner Funds maintained relationships with L&G which collectively manages over £11bn in assets for LGPS Partner Funds.
Under the new agreement, LGPS Central will oversee these funds on behalf of all eight Partner Funds, taking the total volume of assets the pool company is responsible for to over £43bn.
The pension fund now oversees over £23bn across passive funds, including internally and third-party managed equity and fixed income strategies.
LGPS Central’s Partner Funds are Cheshire Pension Fund, Derbyshire Pension Fund, Leicestershire County Council Pension Fund, Nottinghamshire Pension Fund, Shropshire County Pension Fund, Staffordshire Pension Fund, West Midlands Pension Fund and Worcestershire Pension Fund. The combined assets are managed on behalf of over one million LGPS members and over 3,000 participating employers.
Cheshire Pension Fund commented: “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”.
Richard Law-Deeks, LGPS Central CEO 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.
“It amplifies our impact and ensures a unified approach to governance across all Partner Funds.”