The Local Pensions Partnership (LPP) has launched its first fixed income fund to provide its two full-service clients a pooled vehicle with lower costs and simpler investment management.
The £320m fund is designed to deliver optimal long-term risk-adjusted returns by capitalising on global fixed income opportunities and focusing on capital preservation.
It will primarily be invested in higher credit quality, highly liquid fixed income instruments, diversified across geographies, instrument types and maturities, with a hope to capture and enhance the risk-adjusted returns regardless of market conditions.
It will be used by Lancashire County Pension Fund and the London Pensions Fund Authority (LPFA), pooling fixed income assets and providing access to LPP's in-house investment and risk management capabilities.
The pool's chief executive Susan Martin said the fund would support Lancashire and LPFA's strategic asset allocations.
"It is an important part of our continuing efforts to expand our range of investment strategies to support clients' strategic asset allocation," she added.
"It also demonstrates our in-house capabilities in launching a brand new fund, from investment strategy design to manager sourcing and selection."
The new fund has been launched as a sub-fund of the £13bn authorised contractual scheme set up ahead of the compulsory pooling of 89 local authority pension funds this April.
The LPP was one of the first pooled funds to receive authorisation from the Financial Conduct Authority and will grow again in April as the Royal County of Berkshire Pension Fund pools £1bn within the fund.
While the majority (92%) of pension funds in the UK plan to increase their allocations to renewables, the economic impacts of the coronavirus will see larger climate-positive moves such a fossil fuel divestment significant delayed, Octopus Renewables...
In this live blog, Professional Pensions' sister title Investment Week collates all the breaking market news, analysis and opinion on equity, bond and currency movements as well as the impact of trade wars, tightening monetary policy and the Brexit negotiations....
Ross Trustees has secured investment backing from private equity investor LDC, as it prepares to capitalise on growing demand for professional trustee services.
Lee Sanders says the fast and adaptive market response to the crisis of 2020 has shown how much the financial system has improved upon the credit market liquidity issues that were at the heart of the 2008 global financial crisis (GFC).