Local pension funds
Directing pension funds to local investment priorities can bring transformative capital to locally rooted enterprises.
Local authority pension funds held £275bn in assets across England and Wales in 2018 and make substantial investments across the UK. Community wealth building seeks to channel this wealth to local communities while still delivering a steady financial return for portfolio holders.
It is important to consider not just the geography of where the investments are going, but the nature of the business invested in. Channelling investment to the more socially generative side of the economy has multiplier effects upon social, economic and environmental value.
Case study – Lancashire County Pension Fund
As part of the Preston and Lancashire City Deal, Lancashire County Pension Fund will invest in local schemes on a commercial basis, concentrating more future investment into the Preston and Lancashire area. The fund has already invested in student flats, and hotel and office space in Preston.
Using the local pension funds to support local investment priorities, Preston City Council has already taken steps to ensure that its large public pension investments are utilised for social good, using this money to fund housing development in the city centre.