How the Fund works
Each month our active members and their employers pay into the pension scheme. We invest these contributions in assets such as company shares and property which are managed by professional investment managers.
We invest to achieve our key aims: paying pensions every month, tackling climate change, and making the scheme affordable for local employers.
As a government-backed scheme, members’ pensions provide a guaranteed income which is increased every year with inflation.
1. Long-term
We invest for the long-term, consistent with pensions which will be paid for decades into the future.
2. Diversified
Diversification is core to managing investment risk. We invest across a range of global markets and types of assets to achieve the right balance of risk and return.
3. Responsible
We work collectively with like-minded investors to make a positive real-world impact. We believe climate change poses an existential threat to the wider world and long-term investments.
4. Value for money
Working at scale with other investors and pooling our assets ensures that fees paid for investments are reasonable in the context of expected performance.
5. Local
We recognise the benefits of local investments in supporting regional economic development and addressing social and environmental challenges while supporting the Fund’s investment return objectives.
Historically, the Fund pooled its investment assets with nine other administering authorities through the Brunel Pension Partnership.
Investing through Brunel brought significant benefits, including:
In 2025, the Government instructed Brunel to wind down and for existing clients to identify a new Pool to partner with. The Fund is currently in the process of transitioning its assets to Local Pensions Partnership Investments (LPPI) by the deadline of 1st April 2026. LPPI will become the Funds primary source of independent investment advice and will be responsible for implementing its investment strategy.
We invest across different asset classes such as equities (shares), government bonds, renewable infrastructure such as solar farms, and property.
Such broad diversification helps us to manage investment risk.
| Asset type | Allocation | Description |
|---|---|---|
| Equities | 41.5% | Equities include shares in companies listed on stock markets around the world. Owning shares means we share the profits of companies in which we invest. |
| Bonds | 29.5% | Bonds can include public and private loans made to companies or governments. Bonds provide income based on an interest rate. |
| Property | 13.0% | Property includes residential and developments such as warehouses and offices. It generates capital growth and income typically linked to inflation. |
| Infrastructure and Natural Capital | 11.0% | Infrastructure can include assets such as wind farms and electricity transmission. |
| Local Impact | 5.0% | These funds comprise a broad mix of assets including renewable infrastructure, affordable housing and funding for small businesses. |
Investment Strategy Statement
This statement sets out the Fund's long-term investments objectives and defines our policy on the suitability and risk attached to different investments. It defines how the Fund invests to honour its future pension commitments.
View or download our Investment Strategy Statement
Investments Holdings Report
We share information about our assets twice a year in an investment holdings report. The report details the names of the funds we invest in, the local currency (ie ‘USD’ for ‘US dollars’), the industry (ie technology) and the value of each holding.
View our Investment Holdings Report September 2025
The Fund also has a Funding Strategy. This defines how much employers need to contribute, to ensure there is enough money to fund members’ pensions.
Pensions payable in the future are uncertain and depend on many things including when members retire and how long they live.
Every three years the Fund’s Actuary calculates the fund’s valuation and how much employers should contribute to the Fund, as outlined in these two documents:
View or download our Actuarial Valuation Report
View or download our Funding Strategy Statement