The Pension Schemes Act 2026 and its accompanying regulations have made local investment a core responsibility for the LGPS. As funds prepare Investment Strategy Statements due in March 2027, funds and pools alike are working out how to make investment in their region work in practice. But investing in place is only part of the picture. What really matters is whether local investment changes the lives of people living there.
This is the focus of The Impact Mindset. Drawing on our experience of committing over £1bn to impactful UK private markets investments, the paper explains how leveraging an impact mindset can mean better outcomes for pension members, and offers practical ideas for LGPS investors shaping their local investment strategies.
It covers:
- Why bringing an impact mindset to at least part of your local allocation can deliver better outcomes for members, for administering authorities and for your portfolio, within your risk and return requirements.
- An opportunity map covering some example impact asset classes, from SME lending via CDFIs to impact venture and social outcomes partnerships.
- Three practical places to start: broadening your portfolio, building impact criteria into your frameworks, and using impact data to engage members.
- How to tackle the barriers we hear about most often, including limited internal capacity and the due diligence burden of less familiar asset classes.
- Examples from our own portfolio and market-building activity.
