On the go: LGPS Central, which manages around £49bn in assets on behalf of eight Local Government Pension Scheme partner funds, expects to break even on cost savings by 2023.
According to its annual report, the pool has saved £42.8mn in investment management fees for its partner funds as of March 2022, and predicts it will break even on cost savings by 2023-24.
Based on the products it has launched so far, LGPS Central also anticipates at least £127mn net savings will be made by 2034.
LGPS Central’s chief executive, Mike Weston, stated the pool is focused on “strengthening the corporate collective frameworks that are providing significant savings on the investment management fees”.
In January 2022, the pool committed to achieving net zero emissions across its internally and externally managed portfolios by 2050 or sooner.
In its annual report, LGPS Central explains some of the voting practices it has been influencing, such as a shareholder resolution at Chevron Corporation requiring scope 3 targets, which achieved 61 per cent support.
In addition, the fund supported a shareholder proposal at Berkshire Hathaway on the management of physical and transitional climate-related risks and opportunities. The annual report stated that Berkshire Hathaway “is the largest power company without a net zero goal”. Sixty per cent of shareholders voted in favour of this proposal.
This article originally appeared on MandateWire.com
