Local Pensions Partnership has launched the LPPI Diversifying Strategies Fund, which seeks to generate a diversifying source of return distinct from global equity and bond markets.
The £750 million Diversifying Strategies Fund looks to exploit a broad range of relative value and macro directional opportunities in global capital markets. The investment mandate seeks investments in a variety of alternative strategies where the drivers of return are not primarily dependent on market factors.
The Fund takes a multi-strategy, multi manager approach, balancing risk across a range of return factors and asset classes, in pursuit of the Fund’s objective of generating returns with low correlations to traditional asset classes such as equities and bonds.
The Fund provides LGPS clients with a diversifying building block in their asset allocation, and an efficient way to gain exposure to factors that can enhance long term returns while providing stability in times of market stress.
Susan Martin, LPP Chief Executive, said:
“The LPPI Diversifying Strategies Fund is the latest addition to our expanded range of investment strategies supporting clients’ strategic asset allocation implementation.
With LPP’s scale, we are able to access different and niche investment strategies which are often closed to new investors, providing innovative, practical implementation solutions for our clients.”
The Fund 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 £599 million Fixed Income Fund, 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, a fully-owned subsidiary of LPP. Local Pensions Partnership Investments Ltd is authorised and regulated by the Financial Conduct Authority.