The London Pensions Fund Authority (LPFA) was established as a statutory corporation on 31 October 1989 under the London Government Reorganisation (Pensions etc.) Order 1989 [SI 1989 No. 1815]. When the LPFA was formed, all the functions, property, rights and liabilities of the London Residuary Body in relation to the Greater London Council’s Superannuation Fund were transferred to the LPFA. The London Residuary Body was a body set up in 1985 to dispose of, or reallocate, the assets of the Greater London Council after the council’s abolition in 1986.
As a Local Government Pension Scheme (LGPS) fund, the LPFA has, and continues to play a significant role in the evolution of the LGPS sector. Through our partnerships, shared learning and collaboration, we seek to bring efficiency, innovation and professionalism to our sector.
INNOVATING IN INFRASTRUCTURE INVESTMENT
In 2015, the LPFA and the Greater Manchester Pension Fund collaborated to establish GLIL Infrastructure LLP, an award-winning infrastructure investment platform for pension fund investors. In 2018, GLIL was evolved to operate under a regulated structure so that a wider set of investment partners could benefit from its collaborative approach. You can find out more on GLIL’s website.
CREATING A THRIVING POOL
In 2016, the LPFA collaborated with Lancashire County Council (LCC) to form the Local Pensions Partnership Ltd (LPP). The move came ahead of the Government’s reforms to create investment pools from the 89 Local Government Pension Schemes (LGPS) in England and Wales as part of an effort to reduce costs and improve investment performance. LPP is now one of eight national LGPS investment Pools and is jointly owned by the LPFA and LCC.
In 2020, LPP restructured into two distinct businesses, Local Pensions Partnerships Investments Ltd (LPPI) and Local Pensions Partnership Administration Ltd (LPPA), reporting to an LPP Group Board. LPFA and LCC remain joint shareholders of LPP.
Today, LPPA provides pensions administration services to more than 600,000 LGPS, Police and Firefighters’ pension scheme members for around 1,900 employers. LPPI also manages around £19.8 billion of pensions assets for investors using eight investment pooling vehicles. You can find out more about LPP by visiting their website.
INVESTING RESPONSIBLY IN LONDON’S FUTURE
LPFA is also working to invest in the future of Greater London, the 32 London boroughs and its communities. In 2020, working in collaboration with LPPI and another LGPS Pool, London LGPS CIV Ltd (LCIV), the London Fund was launched. An initial £100 million investment by the LPFA was made, followed by a further £50 million, marking a major contribution to the London Fund’s £300 million target. LPPI is the investment manager and LCIV is the alternative investment fund manager for the London Fund.
The London Fund will focus on investment opportunities in residential property and affordable housing, community regeneration, digital infrastructure and clean energy in the capital. While London’s growth presents opportunities for residents and investors alike, there will be inevitable pressure on the city’s housing and infrastructure.
You can find out more here.