Partner Jamie E. Hanley is a co-author of “Governance as a competitive advantage: What the new LGPS guidance means for institutional investors,” published by Funds Europe.  In the article, Jamie discusses how the newly published UK Local Government Pension Scheme (LGPS) fund governance guidance reinforces the role of strong governance in the investment process through greater oversight, accountability, and collaboration.

Examining the implications for institutional investors, Jamie emphasizes that the guidance should be viewed as an enabler rather than simply another regulatory requirement.  “It should give funds, pools and stakeholders even greater confidence in how LGPS investment decisions are overseen, how responsibilities are allocated, and how the connection between strategy and implementation is maintained.”   

The article also examines the continued evolution of LGPS asset pools and the role collaboration and scale can play in expanding institutional investment capabilities.  This guidance “also supports the next phase of the LGPS’s evolution as one of Europe’s most significant institutional investor communities.  Well-governed funds and pools are better placed to consider opportunities in infrastructure, housing, private markets and other productive assets, while ensuring investment decisions remain rooted in their fiduciary responsibilities.”

Jamie further highlights the significance of releasing such guidance at a time when the LGPS plays an increasingly important role in the UK’s long-term investment landscape, noting that guidance reinforces a strong governance framework to support long-term investment opportunities while keeping investment decisions rooted in fiduciary responsibilities.  The LGPS stands as a leader in the UK “not simply because of its scale, but because it combines this with enviable professionalism, accountability and a long-term investment horizon.”