Border to Coast and Partner Funds respond to Government consultation
Posted on October 2nd, 2023
In collaboration with our 11 Partner Funds, Border to Coast has submitted a comprehensive response to the Government’s consultation on the future of pooling and LGPS investment, based on our collective experience of successfully delivering pooling over the last five years and shared ambition to continue to make a difference for the LGPS.
Border to Coast is delivering against Central Government’s original pooling policy objectives:
- Over £40bn pooled through Border to Coast, with clear plans to increase this in the years to come;
- £75m of net cost savings had been delivered to 31 March 2023, with expectations to increase this to £367m by 2030; and
- Increased Partner Funds’ ability to invest in a wider range of assets – this includes a £12bn private markets programme covering private equity and infrastructure, which is delivering growth capital in the UK and across the globe
While significant progress has been made, the evolution of this partnership continues. Border to Coast recognises the need to review and adapt how we operate to reflect both our individual development and to meet the various challenges that may impact us and Partner Funds in pursuit of paying pensions in an affordable and sustainable manner.
Border to Coast and our Partner Funds welcome this consultation on the future of the LGPS and consider that it is an important contribution to how we can collectively build on the good practice that has evolved across the LGPS since 2016.
Key themes developed in the submission include:
- Increased scale in pooling can be delivered but effective governance, common vision and culture, and a focus on meeting Partner Fund needs are essential
- Planning for asset transition to pools is welcome although care is needed not to unnecessarily duplicate or add costs
- Border to Coast’s UK Opportunities strategy and significant private markets programme address Government priorities around Levelling Up and productive capital
- Government can support greater UK investment through long-term policy certainty
- Standardised reporting needs to have appropriate metrics and be mindful of concerns around the growing reporting burden on LGPS funds
The full submission can be found below:
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