Local investment
Polling at the event revealed strong support for encouraging local investment by Local Government Pension Scheme (LGPS) funds but only where members' investment returns are not compromised.
When asked whether they support the government's proposed obligation for all LGPS funds to have "a high-level objective on local investments, including a target range for those investments as a proportion of the total value of the pension fund", more than half (59%) of respondents said they supported the proposal only if there is no impact on investment returns.
A further 19% supported the proposal regardless of its impact on returns, meaning 78% expressed support in principle. However, almost a quarter of respondents (22%) raised concerns, with 10% believing the definition of "local" is too narrow and should instead encompass UK-wide investments, while 12% said investment decisions should continue to be based solely on risk, return and ESG considerations. The polling suggests that while the pensions industry is open to supporting local investment initiatives, protecting members' financial outcomes remains the overriding priority.
Governance
The event also explored proposed governance changes, asking delegates about the challenges of attracting professional trustees to act as "independent persons" supporting LGPS pension committees.
The results highlighted a range of concerns:
39% said remuneration may not adequately reflect the responsibility and complexity of the role.
34% pointed to uncertainty around how the proposed "independent person" role differs from that of a traditional professional trustee.
27% cited potential legal and reputational risks associated with advising committees without having full decision-making authority.
The findings indicate that, while there is interest in strengthening governance through greater independent expertise, clarity around the role and appropriate remuneration will be important to attracting experienced professionals.
Tim Domanski, Deputy Chair of the SPP’s Public Sector Committee, who chaired the event, said: "This SPP polling demonstrates that pension professionals recognise the value of encouraging investment that benefits local communities, but not at the expense of members' returns. Equally, proposals to strengthen governance through independent expertise are welcome, but the role must be clearly defined and appropriately recognised if it is to attract experienced professionals."
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