The Local Authority Pension Fund Forum (LAPFF) is the UK’s leading collaborative shareholder engagement group. Formed in 1990, LAPFF brings together 72 LGPS funds from across the country with combined assets of over £175 billion. The Forum provides a unique opportunity for Britain's local authority pension funds to discuss investment issues and shareholder engagement.
Local authority pension fund investment policies have important implications for their beneficiaries, local communities, council tax payers and the wider economy. As a group, local authority funds are now amongst the most important domestic asset owners, and typically account for a significant slice of the ownership of UK-listed companies. The powerful influence exercised by such funds acting together as shareholders on issues of common concern has considerable potential in relation to companies where they invest.
Given the nature of their liabilities, local authority pension funds can adopt a more long-term approach to the companies they invest in. This allows them to look beyond the focus on the next quarter, but also means they must ensure their returns are both financially and environmentally sustainable. As such, much of the Forum’s work is in ensuring that companies have the right policies and right people in place to create value for shareholders over the long term. Therefore the Forum considers that issues such as climate change and employee engagement require as much investor attention as more traditional concerns such as corporate governance and executive remuneration.
In the wake of the global financial crisis, LAPFF has adopted a more high-profile and interventionist approach to shareholder engagement. It has led investor criticism of accounting standards that misrepresented the capital position of financial institutions, and spoken out publicly against poor standards and excessive pay at the banks.
With stewardship now considered a core part of shareholders’ responsibilities, LAPFF’s long-standing commitment to responsible and robust engagement makes it one of the most important UK investor groups.
LAPFF has adopted a number of policy positions in its engagement with companies and regulators on a variety of environmental, social and corporate governance issues. We invite you to Full report, or