Investments
It’s the Pension Fund’s role to invest the contributions our members and employers pay in, to help fund the pensions that we pay now and those that we will be paying in the future.
What does the Hampshire Pension Fund invest in?
There are lots of types of investment. You can group investments under different headings known as ‘asset classes’. The Hampshire Pension Fund invests in the following asset classes:
- Public equity
- Bonds
- Cash
- Property
- Alternative assets
What is public equity?
Businesses have several options for raising capital and attracting investors. Equity allows a company to give investors a share of the business. The investor then earns returns as the business grows. Most publicly traded stocks are available and easily traded daily through public market exchanges, such as the London Stock Exchange.
What are bonds?
A bond gives a fixed rate of return. A bond could be thought of as an ‘I owe you’ between the lender and borrower that includes the details of the loan and its payments. Bonds are used by companies and governments to finance projects and operations.
What are alternative assets?
An alternative investment is a financial asset that does not fall into one of the conventional investment categories such as equities, bonds, and cash. Types of alternative investments include private equity and real assets such as timberland and infrastructure investments like airports, data centres and energy infrastructure.
How are investment decisions made?
One of the functions of the Pension Fund Panel and Board is to agree on an Investment Strategy Statement (ISS). The ISS is intended to provide evidence that the Fund has considered the suitability of its investment policies and the approach to implementing those policies, including the types of assets that the Pension Fund will invest in.
Hampshire is a member of the LGPS Central investment pool. LGPS Central are responsible for implementing the Hampshire Pension Fund’s Investment Strategy through the appointment of investment managers or the decision on which investments to buy or sell.
What is LGPS investment pooling?
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.
The LGPS Central Pool
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.
Investment pooling 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.
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 funds, 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 does investment pooling mean for scheme 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.
What about other considerations in investment decisions?
The Pension Fund wants to be a Responsible Investor and recognises that Environmental, Social, and Governance (ESG) factors can influence long-term investment performance and the ability to achieve long-term sustainable returns. More information on the approach to Responsible Investment is available here.
What about local investment?
The Fund invests locally and has published its first Local Investment Report.
