Fund launches £1.1bn West Midlands investment plans

A public-sector pension scheme has announced plans to work with the West Midlands Combined Authority to identify “suitable local opportunities” to invest in the region.

The announcement comes after the West Midlands Pension Fund approved its latest investment strategy, set to cover the next six to eight years.

WMPF works in partnership with seven metropolitan district councils and over 800 participating public-sector employers across the region, managing around £21bn worth of assets for its members.

The updated policy formalises the fund’s place-based investment plans, and sets out how local opportunities will be assessed alongside national and global investments.

Cllr Milkinder Jaspal, City of Wolverhampton Councillor and chair of the pensions committee said the move reflected the fund’s confidence in the region.

“This £1.1 billion allocation sits firmly within our Investment Strategy Statement,” he said.

“Every investment will be assessed against the same rigorous criteria for risk, return and governance that apply across our portfolio.”

The fund says its new strategy will be underpinned by a memorandum of understanding between WMPF and WMCA, setting out how the two organisations will work together to develop a pipeline of investable opportunities.

Richard Parker, Mayor of the West Midlands, added: “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.”