Member

My Amendment 2 would allow a scheme to be a member of more than one asset pool. Here I have in mind a specialist national infrastructure asset pool. Let me explain. The LGPS has about £400 billion under management. The Government set a target of about 10% into infrastructure—£40 billion for the whole lot. That is a chunky piece of change, but it is going to be jam spread across half a dozen pools—£4 billion or £5 billion each. It is not even a needle mover. A billion, which would be 20%, does not go far nowadays. As those promoting the Lower Thames Crossing—a critical piece of infrastructure—will tell noble Lords, £0.5 billion was spent on fees before a brick had been laid. With only £4 billion or £5 billion per scheme—and you cannot make those chunky investments, because they would be too big and give the fund indigestion—it could be more than sensibly allocated by the trustees of a single pool, driving a concentration risk.