The Local Government Pension Scheme (LGPS) achieved growth in a turbulent 2021-22, according to an annual report.
Local authority return on investment was 8.1% compared to inflation of 8.8% over the period while total assets increased by 7.8% to £369bn. The war in Ukraine had an impact, with investments reducing in value through the final quarter of 2021-22.
Total investment management charges increased by £381m or 25.6%.
Pensions & Investment Research Consultants (PIRC) said costs incurred by funds using active equity management rather than passive management had a ‘substantial impact’ on LGPS performance.
PIRC said ‘strong results in the past two years were largely wiped out by the marked underperformance of most active managers in the latest year’.
This article was originally published by The MJ (£).
