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Investment

Introduction

The London Pensions Fund Authority (LPFA) is one of the largest Local Government Pension Schemes (LGPS) in the UK with assets under management in excess of £3.7 billion as at September 2007. More information about the LPFA may be found in the history page.

Background

The scheme’s assets and liabilities were managed as a single fund until 1993, when the decision was taken to create two sub-funds, the Active sub-fund and Pensioner sub-fund. These two sub-funds have different characteristics, with the Active sub-fund primarily including employers that continue to accept new members. The Pensioner sub-fund includes employers that are generally all closed to new entrants.

As a consequence of this, and to better match the specific nature of their respective liabilities profiles, there are material differences in that:

  • the Active sub-fund assets are primarily invested in equities whereas the Pensioner sub-fund assets are primarily invested in bonds; and
  • the Pensioner sub-fund is much more mature. That is, its members have a higher average age and far fewer current employees than the Active sub-fund.

Implementation of investment strategy

The LPFA board is responsible for the overall investment strategy. The decisions of the Board are implemented by the Investment team headed by Vanessa James, Investment Director. The Investment team monitors all aspects of the investment strategy and reports regularly to the Board.

Feedback

If you have any feedback or comments regarding the investment section of the site please contact us at investment@lpfa.org.uk

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