West Midlands Mayor and Pension Fund announce £1.1 billion investment in region

West Midlands Pension Fund aims to allocate up to £1.1 billion to investments within the West Midlands over the next six to eight years, following approval of its updated Investment Strategy Statement.

The allocation represents up to 5% of the Fund’s assets under management and forms part of the Fund’s long-term investment strategy. All investments will remain subject to the Fund’s established governance framework, due diligence processes and fiduciary duties.

The updated Investment Strategy Statement embeds the Fund’s approach to place-based investment and sets out how local opportunities will be assessed alongside national and global investments. The allocation will be phased over time and will depend on the availability of suitable opportunities that meet the Fund’s risk and return requirements.

Richard Parker, Mayor of the West Midlands, said: “This is a massive vote of confidence in the West Midlands. By setting aside £1.1bn for local investment the Pension Fund is supercharging my Growth Plan by backing our key industries and businesses.

“The Fund has an obligation to protect its members’ money and deliver best value for them, so this commitment really is testament to our region’s strength as an investment prospect.

“This agreement means more of the wealth generated by fund members stays here to benefit our communities, create high-quality jobs and build the essential infrastructure we need to drive the region forward.

“By combining the Fund’s financial power with our long-term vision we are building a region that works for everyone.”

Councillor Milkinder Jaspal, chair of the Pensions Committee said: “Our responsibility is to deliver strong, sustainable returns for our members and employers.

“This £1.1 billion allocation sits firmly within our Investment Strategy Statement. It reflects our confidence in the region, but every investment will be assessed against the same rigorous criteria for risk, return and governance that apply across our portfolio.”

The Fund has been working closely with the West Midlands Combined Authority (WMCA), who will identify and shape investable opportunities aligned with the region’s Growth Plan. This joint work will be underpinned by a memorandum of understanding between the two organisations, setting out how WMPF and WMCA will work together to develop a stronger pipeline of investable opportunities, while respecting the Fund’s fiduciary responsibilities and decision-making processes.

The West Midlands is seeing strong levels of development and investment activity. As a long-term institutional investor rooted in the region, West Midlands Pension Fund is well placed to consider suitable local opportunities alongside national and international markets, bringing disciplined, patient capital to opportunities that meet its standards and protect members’ pensions.

Oversight will continue to be provided through the Fund’s existing governance arrangements, including the Pensions Committee and Local Pension Board. Implementation of the investment strategy is done by the Fund’s pooling partner, LGPS Central.

Further detail on the Fund’s investment strategy is available in its published Investment Strategy Statement.