The Local Pensions Partnership (LPP) today launched its first fund dedicated to investing in fixed income as an asset class.
The £320m Fixed Income Fund aims to capitalise 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 new fund will provide the Lancashire County Pension Fund (LCPF) and the London Pensions Fund Authority (LPFA) — the LPP’s two full-service clients — with a Fixed Income investment vehicle which can lower costs by pooling assets together.
It is a sub-fund of the LPP I Asset Pooling Authorised Contractual Scheme (ACS).
‘LPP’s inaugural Fixed Income Fund provides a significant new investment vehicle for our clients,’ said LPP chief executive Susan Martin.
‘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.’
Since April 2016, LPP has launched a £1.3bn Credit Fund, a £1.5bn Global Infrastructure Fund, a £1.8bn Private Equity structure and a £5bn Global Equity Fund.