Nearly nine out of ten (89%) Local Government Pension Scheme (LGPS) funds are planning to increase their allocation to local social investing in the next few years, a new survey has revealed.
The research from Alpha Real Capital shows just over half (54%) of LGPS fund professionals in England and Wales say their investment will be within their local council area.
A fifth said their local social investments would be within their pool, with a quarter said it would be UK-wide.
Stuart Hanson, client solutions at Alpha Real Capital, said: 'Our research shows clearly that LGPS funds are very much focused on increasing their level of local and social investing, and the impact of this could be huge.
'Indeed, if only 5% of LGPS funds’ combined assets were allocated to local investment, this would unlock as much as £16bn for investment in assets that contribute towards positive social outcomes.'
Alpha said place-based social investments can help local authorities to deliver positive, quantifiable social outcomes in addition to attractive financial returns.
