Local Pensions Partnership Investments (LPPI) has exceeded £250m in cost saving, as it increases the annual savings for its Local Government Pension Scheme (LGPS) partner funds for a ninth year in a row.
LPPI increased its annual cost savings to £49.2m in the year to 31 March 2025, up from £48.5m during the same period in 2024.
This means the pool has now delivered increasing annual cost savings for its partner funds every year since 2018 and saved them a total of £250.9m since inception.
This has exceeded its initial target of delivering £200m in cost savings by 31 March, 2025.
LPPI’s savings have come from making direct and co-investments through its in-house management team, and from the economies of scale that its pooling model delivers.
This is particularly true of private market assets: where scale has meant more cost-effective access to investments and an enhanced ability to negotiate lower fees.
LPPI’s scale is set to increase further as six new LGPS partner funds – the Devon, Avon, Dorset, Somerset, Cornwall and Environment Agency pension funds – join the pool as part of the next stage of the Government’s Fit for the Future process.
Following their integration, LPPI’s total assets under management will grow to around £55bn.
“This achievement is testament to the expertise of our team, the success of pool collaboration and the strength of our Whole Scheme Management model,” said Chris Rule, chief executive officer at Local Pensions Partnership Investments (pictured). “By partnering with our clients to manage all of their assets, we’ve been able to maximise the advantages of scale right from day one.”
Rule added: “Welcoming new partners will position us to access new opportunities and deliver further efficiencies which help to support a stable, affordable LGPS for the benefit of members, employers and taxpayers.”
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