Member

The real problem with excessive scale, pooling and the sort of ministerial directions contemplated by Clause 2 is that you do not get scale where you need it, and you have too much scale where you do not. Let me explain using the example of infrastructure in investment. The LGPS has £400 billion of AUM. The rule of thumb is that a scheme would have about 10%, say £40 billion, for the allocation for infrastructure. Split across half a dozen pools, that is only £4 or £5 billion each—it is not going to be a needle mover. There should be a single national pool for infrastructure investment for the LGPS.