Local Pensions Partnership Investments has increased its annual net cost savings to £48.5m in the year to 31 March 2024, taking its total net cost savings since the pool launched in 2016 to £201.7m, up from £153.2m the previous year.
The surge in net cost savings means that LPPI has reached its target of delivering net cost savings of £200m a full year early.
The pool said the savings were driven by a range of factors, including lower fees negotiated with external managers and a growing portfolio of direct investment and co-investment which complements allocations to external managers.
Chief executive officer Chris Rule said: “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.”
Rule has also welcomed the government’s recognition of the “integral” role LGPS and the broader UK pensions sector play in supporting the development of a sustainable economy.
He said: “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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