Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
Quick links:
  • Home
  • The Actuary Issues
  • March 2013
03

Limit on council pension fund infrastructure investment doubled

Open-access content 7th March 2013

Local authority pension funds will be able to double the amount they can invest in infrastructure projects from the beginning of next month, under plans confirmed by ministers yesterday.

The government has increased the cap placed on the share of assets council pension funds can invest through limited partnerships from 15% to 30%. These partnerships are legal structures which are often used for major property, private equity and infrastructure projects.

Doubling the limit was one of two options put out for consultation by Local Government Secretary Eric Pickles last November, with the other being to create a new dedicated investment class for infrastructure investment with a limit of 15%.

The government's response to the consultation shows that over half (51) of the 87 respondents favoured a simple doubling of the upper limit for investments through limited partnerships because it could be introduced quickly and avoid the 'complications' of creating a new category.

Local government minister Brandon Lewis said: 'Unlocking town hall pension pots so they can invest more in vital infrastructure projects will help this country compete on a global scale and get Britain building.

'By lifting the restrictions controlling local pension investments councils will now have the choice to invest more in local job-creating infrastructure and housing projects.'

According to the National Association of Pension Funds, a number of the 89 funds within the Local Government Pension Scheme already invest around 15% of their assets in limited partnerships through property and private equity investments and therefore have little capacity for new infrastructure investment.

NAPF policy director Darren Philp said he was 'pleased' the government had decided to change the 'out-dated' limits, but called for more to be done to address how council pension funds invest their assets.

'Lifting this limit will remove one barrier, but there are wider issues that need to be addressed. The government needs to undertake a comprehensive review of the local authority pension fund investment regulations to ensure that funds can act in the best interests of their members and council tax payers. We are pleased that the government has committed to exploring the possibility of wider reforms in this area.'

This article appeared in our March 2013 issue of The Actuary.
Click here to view this issue
Filed in:
03
Topics:
Investment
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

IFRS 17 consultant

Hong Kong
Negotiable
Reference
118883

Wealth Investment Associate Manager

Edinburgh, Scotland / West Midlands, England, Birmingham / England, London
£40000 - £55000 per annum + bonus + benefits
Reference
118882

Lloyd's Managing Agency - Actuarial Analyst

London (Central)
Up to £65000 per annum + benefits
Reference
118881
See all jobs »
 
 

Most-Popular

 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2020 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited, Level 5, 78 Chamber Street, London, E1 8BL. Tel: 020 7880 6200