Two of the UK's largest newly-created public pension funds are planning extensive in-house investment teams to cover private equity and infrastructure, laying down a bold challenge to an industry that manages more than £11bn of council workers' savings.

LGPS Central and the Northern Pool, which between them will take charge of £86bn next April when reforms to centralise councils' pension assets take effect, are both building out existing internal teams to take more control of these non-listed investments.