Local authority pension funds: investing for growth

21st September 2012.

The Smith Institute has published a new ground clearing study by a research consortium of the Institute, the Centre for Local Economic Strategies, PIRC, and the Local Authority Pension Fund Forum. The study says many local authority pension funds are starting to show real interest in local capital projects (like social housing) that offer wider socio-economic benefits as part of their investment strategies.

The report identifies the challenges facing large scale investment in local economic growth potential by local authority government pension funds. The report calls on Government, local government, and the pension fund industry to do more to catalyse the sector including: blending and pooling funds, better guidance and training for trustees and pension fund officers, reforming the rules on the management and investment of funds, and establishing a new independent platform (clearing house) to assess the economic, social and environmental value of projects.

The local economic development world, including Local Enterprise Partnerships, also need to improve engaging with (and presenting investment opportunities to) local authority pension funds