Almost all (94 per cent) UK Local Government Pension Schemes (LGPS) fund professionals would like to increase their investment in the health sector, a survey conducted by Alpha Real Capital has revealed.

The survey found that 74 per cent of LGPS fund professionals believe that health is suitable as part of a social infrastructure allocation, making it the most popular sector, ahead of housing, which was identified by 58 per cent of fund professionals, and education, identified by 51 per cent.

Alpha suggested that these findings “confirm” these three core sectors of social infrastructure are the “top priorities” for LGPS funds looking to invest for social impact.

Alpha’s research additionally detailed the sub-sectors of health that garnered the most interest from fund professionals, with primary care being the most commonly cited sub sector, identified by 67 per cent as being of interest.

This was ahead of specialist care (identified by 65 per cent of fund professionals), elderly care (identified by 55 per cent), secondary care (34 per cent), and private treatment/specialist clinic (29 per cent).

With a focus on social impact and levelling up, Alpha argued that most LGPS fund professionals were aware of the social benefits available from health sector investments, noting that nearly nine out of 10 (89 per cent) respondents said they were aware of the potential social impact.

Alpha Real Capital co-head of social infrastructure, Anne Copeland, commented: “Alpha Real Capital believes the health sector is a multi-billion-pound investment opportunity for institutional investors driven by long-term structural demand, declining and inadequate supply, and significant funding shortage due to constrained public finances."

Alpha Real Capital CIO and head of sustainability, Ed Palmer, added: “Investing in the health sector offers LGPS funds the opportunity to achieve stable long-term returns while also supporting the essential health-related services on which their members and wider communities rely.”

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