Asset managers could take a fee hit of around £116 million a year by 2021 – at the high end of previous estimates – as the local government pension scheme pools bear down on costs, according to the first detailed proposals from the funds.

This figure could rise to an annual £312 million by 2034, confirming the funds' ambition to aim for the highest possible savings, as the eight pools increasingly manage assets in-house and drive down fees in other ways.