LPP has assembled a highly experienced and well-qualified investment management team with deep understanding of the LGPS and wider pension scheme funding issues.
Partner funds can participate in LPP’s pool and/or access a range of investment management advisory services.
They also have the opportunity to invest in infrastructure via the joint Infrastructure Fund established in 2015 with Greater Manchester Pension Fund. LPP has a long history of infrastructure investment, including direct holdings in UK and overseas.
Asset pooling is carried out through an Authorised Contractual Scheme managed by an FCA-regulated operator. This offers a high degree of assurance to all stakeholders. Illiquid assets that cannot be pooled, such as property, infrastructure and other alternatives, can benefit from being jointly managed through Special Purpose Vehicles.
Global Equities Fund
Direct investment performance
LPP currently manages an internal equity portfolio, which makes up 40% of our £5bn Global Equities Fund. This internal mandate focuses on large cap companies which we hold long-term. Before the launch of our Global Equities Fund, the £800m+internal equity portfolio returned c.9.5% in 2015, significantly ahead of the Mega Cap Benchmark at 0.01% and the MSCI World at c. 4.8%.
You can view how our internal equity portfolio is performing here.
You can view how the list of holdings here.
We are committed to Responsible Investment and engagement, with a proactive approach towards addressing environmental, social and governance (ESG) issues in our investment strategy and integrating these concepts into our day-to-day activities, evolving our practice under the guidance of our Stewardship Committee. Where we allocate to third-party managers, we expect these managers to understand and support our policies as part of their core approach. You can read more about this in our Responsible Investment Policy here.
Investment Advisory Services
LPP offers a range of investment management services, including advisory services (e.g. portfolio-wide advice on strategic asset allocation) and comprehensive stakeholder reporting.