LGPS (England & Wales) – Low-Risk Funding Index
What is the purpose of the Index?
Although the results of the 2022 triennial valuation exercise for LGPS (E&W) funds were only finalised earlier this year, much has happened to the funding levels of the 87 participating funds as a result of the changes in market conditions since the effective date of the valuation on 31 March 2022.
The very significant improvement in funding levels present a new funding and investment landscape for the LGPS and so we have developed the Index to help LGPS stakeholders understand the evolving positions and impact of changes in market conditions on a month-by-month basis.
At launch the Index is based on publicly available information as at 31 March 2022, which means that assumptions and estimates have had to be made over quite long periods of time. We hope that funds will be prepared to share more up to date information with us to enable our estimates to be refined. We may also update our calculations for new information that comes into the public domain.
Initial launch – September 2023 (based on 31 July 2023 market conditions)
The initial launch will include:
- The overall funding position for the LGPS (E&W) in aggregate
- The individual funding positions for each of the 87 participating funds, provided on an anonymised basis
The initial launch will be updated to include:
- The individual funding positions for each of the 87 participating funds on a named basis
- Commentary on how funds are responding to current market conditions through their funding and investment strategies and employer engagement
- A similar index for the LGPS in Scotland
If you would like to speak to the Isio team about this the Index or any of the issues raised, please contact us using the details below.