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LGPS funds strive to make an impact with build to rent

Date 11th March 2019
Source FT Pensions Expert
Type News article

This article originally appeared in the FT’s Pensions Expert on 25th February, 2019.

A minor revolution is taking place in town halls across the country. Local authority
pension funds are changing tack, eschewing traditional equities for alternatives, and
looking to make a difference with their allocations.

Initiatives include impact investing on social projects and UK residential property initiatives.
Funds often venture into this market through private equity partners. With Brexit’s stormy seas in
prospect on the horizon, will these changes in direction pay dividends for them?

The Merseyside Pension Fund and the Tyne and Wear Pension Fund are typical of the new
breed of local authority investors turning to residential property.

They have joined five existing local authorities: the Derbyshire Pension Fund, Nottinghamshire
Pension Fund, Staffordshire Pension Fund, Teesside Pension Fund, and the West Midlands
Pension Fund as limited partners with Hearthstone Investment Management Limited, an
institutional investment manager specialising in the UK private rented sector.

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