13 Mar 2024 1 min read

LGPS Intelligence: Options for mitigating equity risk

By James Sparshott , Robert Pace

With LGPS funding levels much improved and US equities near all-time highs, what options do LGPS funds have to guard against potential equity market falls?


 Given average equity allocations of c.50%[1] and limited fixed income allocations, LGPS funding positions are at historically high levels.

In light of the upcoming triennial valuation on 31 March 2025 for England and Wales, many LGPS funds are likely to be considering how best to maintain these improved funding positions without overly compromising on expected returns.

In Scotland (where the valuation was 31 March 2023), LGPS funds will be finalising their valuation results and considering strategy implications given significantly higher funding levels.

In our latest LGPS Intelligence article, we consider what the future could hold for equity markets, and how we believe the LGPS could employ equity protection strategies to seek to provide stability to their funding position with minimal outlay. 

Click here to read the full article.


[1] Source: PIRC annual review September 2023 LGPS Scheme Advisory Board – Investment (lgpsboard.org).

James Sparshott

Head of Strategic Client Team, Distribution

James is Head of the Strategic Client team at LGIM. This team looks after the evolving needs of LGIM’s largest UK clients. In addition to this, James also acts as Client Director to a number of strategic UK DB and Local Government Pension Scheme clients. James joined LGIM in 2004 from Deutsche Asset Management where he was a client account manager in the Global Equity team. He holds the Investment Management Certificate.

James Sparshott

Robert Pace

Senior Solutions Strategist

Robert works with clients on LDI and broader solutions-based investment strategy. His three Rs are rates, regulation and arithmetic (showing a maths degree lives on forever). When Robert is not pondering LDI or investment strategy and talking to clients, he can often be found cycling in the Surrey Hills or watching hours of cycling coverage on Eurosport (at 30x speed in order to prolong his marriage).

Robert Pace