A £1.3bn Credit Fund has been launched by Local Pensions Partnership (LPP) to offer investors cost-effective exposure to diverse sources of return.
The fund will adopt a long-term, buy-and-hold investment approach with a focus on reduced volatility and capital preservation.
Susan Martin, LPP chief executive, said: 'The LPPI Credit Fund adds an important new component to our growing, and increasingly diverse, range of investment strategies. At a time of continuing volatility in the global markets, the new Fund can help investors achieve superior performance while mitigating downside risk.
'It also provides another example of how collaboration can benefit our shareholder funds by delivering not only sustainable long-term investment outcomes, but also cost savings through manager consolidation and an enhanced internal investment capability.'
LPP is a partnership between the Lancashire County Pension Fund (LCPF) and the London Pensions Fund Authority (LPFA).