£5bn global equity fund launched by Local Pensions Partnership
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Local Pensions Partnership
The Local Pensions Partnership (LPP) has launched a £5bn global equity fund, reducing the number of managers it employs within the asset class to just three.
The LPP — which is hopeful of becoming an approved Local Government Pension Scheme pool — has ended mandates with several fund managers which previously ran global equity funds for shareholders Lancashire County Pension Fund and London Pensions Fund Authority.
It has appointed MFS Investment Management, Robeco and Magellan to run the 60% of global equity assets which are externally managed, with the rest being run in-house.
Susan Martin, LPP chief executive, said: “Following our Financial Conduct Authority and Authorised Contractual Scheme (ACS) approval we have been waiting for government to change the LGPS investment regulations.
“There are now no barriers to physically pooling our assets and launching the fund.”
Martin said that the global equity fund is the first in a series of planned asset class funds to be launched under the ACS.
LPP is aiming to come forward with future funds for fixed income, total return and property, with more illiquid investments such as private equity and infrastructure expected to be consolidated under special purpose vehicles over the next six months.
A spokesman for LPP would not reveal fee details but said: “We are expecting to see a significant fee saving which we should be able to detail at a later date.”
In April, the LPP pool gained FCA approval. Room151 revealed at the time that the new structure will manage some treasury investments on behalf of one of its member councils.
The launch coincides with the revision of investment restrictions earlier this week, which previously inhibited Local Government Pension Scheme (LGPS) funds pooling 100 percent of their assets in a single collective vehicle.
