This study aims to provide a detailed assessment of how pension funds can use their substantial resources to deploy capital in ways that derive wider economic benefit. As such, the study’s objectives are to: test out what the demand for impact investments might be; review what has been achieved and what can be achieved by such investments; identify the key opportunities and barriers to change; and make recommendations on what stakeholders might do to enable changes in practice.
The study is based upon the results of interviews and workshops with local authority pension fund officers, local authority economic development officers and external fund managers. The main lines of enquiry were informed by a detailed literature review and a call for evidence that was sent out to 100 funds across the UK. The response from these forms the basis for the structure of the report.