LPP kicks off first fixed income fund
0Local Government Pension Scheme pool, Local Pensions Partnership, has launched its first fixed income fund.
The £320m fund is aimed at delivering long-term risk-adjusted returns on global fixed income investments, with a strong focus on capital preservation.
LPP said that investments will focus on higher credit quality, highly liquid investments across a range of instrument types and maturities.
Susan Martin, LPP chief executive, said: “LPP’s inaugural fixed income fund provides a significant new investment vehicle for our clients.
“It is an important part of our continuing efforts to expand our range of investment strategies to support clients’ strategic asset allocation implementation.”
The fund will be managed by LPP’s in-house team, serving its two full-service clients: the Lancashire County Pension Fund and the London Pensions Fund Authority.
Since being formed in April 2016, LPP has created a £1.3bn credit fund, a £1.5bn global infrastructure fund, a £1.8bn private equity structure and a £5bn global equity fund.
Meanwhile, another pool, LGPS Central, has launched the search for external managers for a £2.5bn global equity fund.
In a tender document launched this week, the pool said that successful candidates should be able demonstrate a consistent, robust, repeatable investment process, a concentrated portfolio and low and fully transparent costs.
The mandate would last for ten years and four months from October this year.
