Local Pensions Partnership has launched the LPP I Fixed Income Fund, its inaugural fund dedicated to investing in Fixed Income as an asset class.
The Fund aims to deliver optimal long-term risk-adjusted returns, capitalising on opportunities in the global fixed income market, with a strong focus on capital preservation. It will invest predominately in higher credit quality, highly liquid fixed income instruments across geographies, instrument types and maturities. The Fund is aimed at capturing and enhancing risk-adjusted returns, irrespective of market conditions.
It provides LPP’s two full-service clients, the Lancashire County Pension Fund (LCPF) and the London Pensions Fund Authority (LPFA), a Fixed Income investment vehicle which can lower costs by pooling assets together, and benefit from LPP’s in-house investment and risk management capabilities in delivering sustainable long-term investment outcomes.
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.
It also demonstrates our in-house investment capabilities in launching a brand new fund, from investment strategy design to manager sourcing and selection.”
The Fund is a sub-fund of LPP I Asset Pooling Authorised Contractual Scheme (ACS), and is the latest in a series of investment funds and structures launched by LPP. Since it started operations in April 2016, LPP has launched a £1.3 billion Credit Fund, a £1.5 billion Global Infrastructure Fund, a £1.8 billion Private Equity structure and a £5 billion Global Equity Fund.
The Fund is managed by Local Pensions Partnership Investments Ltd (LPP I), a fully-owned subsidiary of LPP. LPP I is authorised and regulated by the Financial Conduct Authority.