The fund is comprised of pooled equity assets of the Lancashire County Pension Fund (LCPF) and London Pensions Fund Authority (LPFA), both primary clients and shareholders of LPP.
It was launched under the LPP’s Authorized Contractual Scheme (ACS), a type of tax-transparent fund, following reforms to the UK’s local government pension fund assets.
Bruce Carnaby, head of investment operations at LPP, said: “We launched the LPP as we believed funds must manage all services together to enable them to benefit from superior governance and to achieve lower costs and above average returns.”
He added: “BNY Mellon’s depositary oversight and performance reporting capabilities, and its robust approach to managing the transition of assets to the global equity fund, made them our preferred custodian when launching our first tax-transparent pooling vehicle.”
Paul Traynor, international head of pensions and insurance segments at BNY Mellon, said: “In supporting this fund structure, BNY Mellon is providing a range of solutions that can help pension schemes maintain their beneficial tax status and transition their assets into efficient pooling vehicles.”