How your Pension is Invested

The Leicestershire County Council Pension Fund (“The Fund” or “Fund”) invests employer and employee contributions to ensure that the Fund continues to have sufficient assets in the long term, that supports the payment of members' pension benefits, and ensure employers' contribution rates remain as stable as possible. To achieve this, the Fund invests in a range of assets globally, including equities (shares in companies), corporate and sovereign bonds, private equity, property, infrastructure and forestry.

These are expected to have a range of different risk and returns profiles, and by combining these into a diversified portfolio, they should support stability in employers contributions.

Leicestershire County Council, as administering authority of Leicestershire County Council Pension Fund, has delegated decision-making on the overall investment strategy to the Local Pension Committee. The Committee has approved its approach which is set out in statutory documents, principally the Investment Strategy Statement and Funding Strategy Statement. Find out more about our Fund policies.

All day-to-day investment management is delegated to specialist investment managers, but the Fund retain direct responsibility for asset allocation, manager selection and manager monitoring.

LGPS Central Pool

Investment Pooling within the Local Government Pension Scheme (LGPS) is designed to bring pension funds together to invest collectively, while each fund keeps local control over its funding decisions, member benefits, and relationships with employers.

Under pooling, individual LGPS funds remain responsible for setting their own investment strategies and funding objectives. Funds are then invested through an investment pool, allowing them to benefit from greater scale, stronger governance, enhanced investment capability and improved value for money than could be achieved individually.

LGPS Central  | LGPS Central is an LGPS‑owned investment pool that helps manage and invest money for its member funds. After recent Government changes called Fit for the Future, LGPS Central now looks after about £100 billion, representing 14 pension funds, more than 6,000 employers, and around 1.7 million members.

The pool operates through LGPS Central Limited, a company regulated by the Financial Conduct Authority (FCA). LGPS Central Limited works with its Partner Funds to deliver their investment strategies.

From April 2026, LGPS Central brings together 14 pension funds from across England into a single partnership. These funds are Cheshire, Derbyshire, Gloucestershire, Hampshire, Leicestershire, Norfolk, Nottinghamshire, Oxfordshire, Shropshire, Staffordshire, Suffolk, West Midlands, Wiltshire and Worcestershire.

This new partnership brings together funds that were previously part of other pooling arrangements and reflects how much the funds have worked together to meet the Government’s deadlines for these changes.

Governance and How the Pool Operates

Good governance is at the heart of how LGPS Central operates. The pool has reviewed its governance arrangements and updated its legal processes to meet the requirements of Fit for the Future. This includes moving all Partner Funds to new management agreements.

While LGPS Central has met the Government’s Fit for the Future implementation requirements, the pool is operating under transitional governance arrangements.

These arrangements will stay in place until the final governance model is developed and agreed together with LGPS Central. The new model will be introduced in Autumn 2026, making sure that the governance is strong, fair, and takes on board partner fund feedback before it becomes permanent.

At the same time, LGPS Central is working step by step to move assets and services from old providers in a careful and sensible way, making sure risks are managed and money is well spent. 

Looking Ahead

Pooling is not just a one-off event but an ongoing process. As a manager owned by LGPS, LGPS Central keeps working to bring Partner Funds together so they can invest as a group for everyone involved. By combining size, knowledge and strong oversight, LGPS Central aims to deliver lasting value for employers and members throughout the partnership. 

What it means to members

For scheme members and employers, investment pooling:

  • does not change pension benefits or administration
  • does not affect the security of the LGPS

Your pension fund continues to act in your best interests, working with LGPS Central to invest assets responsibly and sustainably over the long term.

Responsible investment

Responsible investment is an approach to investment that aims to incorporate environmental, social and governance factors into investment decisions, to better manage risk and generate sustainable investment returns.

The Fund believes it has a responsibility to take these issues seriously and incorporates environmental, social and governance (ESG) considerations into investment decisions to better manage risk and generate sustainable, long-term returns. This is considered by the Fund in two key areas:

  1. Sustainable Investment/environmental and social factors: Considering the financial impact of environmental factors (including climate risk, social and governance factors) on the Fund's investments.
  2. Stewardship and governance: Acting as a responsible and active investor/owner through considered voting of shares and engaging with investee company management as part of the investment process.

The latest voting and stewardship reports | Democracy are reported every quarter to the Local Pension Committee.

Local Authority Pension Fund Forum (LAPFF)

Membership of the Local Authority Pension Fund Forum (LAPFF) helps us to engage with companies to understand relevant issues, and to promote best practice. Collective pressure from investors via organisations such as the LAPFF helps to encourage listed companies to:

  • enhance their corporate governance
  • improve their environmental impacts
  • improve their social impacts

See the quarterly progress reports | LAPFF

For more information about how the Fund manages climate risk and opportunities and the Net Zero Climate Strategy, please visit the climate change and investment risks page.