Local Investing and Resources

Government guidance defines investments as “local” if they are in the region of the Administering Authority or its pool and have a measurable beneficial impact.

Funds can set their own definition of local for the purposes of setting an investment strategy, which may extend to their immediate local area, region, or pool.

Local investments are not an asset class and may include investments in a range of different asset classes, including private equity, private debt, property, and infrastructure, although generally any investment made through public markets would not be considered a local investment unless a clear local benefit can be established.

Typically, the investment sectors with the greatest potential for local investment are housing, regeneration, infrastructure, clean energy, SME finance, and natural capital.

Administering Authorities:

Must set a target range for the proportion of their assets that they would like to be invested locally. This should include a target percentage as well as a range of tolerance
Must take account of Local Growth Plans set by relevant strategic authorities
May indicate that they will accept lower returns for local investments than for the rest of their portfolio
Should set out their preferences for the local area, region, and sectors they wish the pool to target.

See below for our Reading Room with a list of local resources provided by a range of providers, including some of the managers on our framework.