The Local Pensions Partnership (LPP), a joint venture between two UK pension schemes that are seeking to cut investment management costs by asset pooling, has launched a credit fund through its own authorised alternative investment fund manager.
The LPPI Credit Investments LP, which has £1.3 billion (€1.5 billion) invested in it, will target an “illiquidity premia” from long-term holdings of credit-linked assets.
LPP’s two shareholder pension schemes, the Lancashire County Pension Fund and the London Pensions Fund Authority, said earlier this year they had saved over £7.5 million per annum by launching their own global equity fund.
Susan Martin, LPP chief executive, said the credit fund added a new component to LPP’s “growing, and increasingly diverse”, range of investment strategies.
“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,” Martin added.
Earlier this year LPP launched a £1.5 billion global infrastructure fund in and a £1.8 billion private equity.
Additional launches in coming months will see fixed income and total return products unveiled.
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