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Local Pensions Partnership

PRI reporting framework 2019

Asset class implementation gateway indicators [OO 10 - 12] Peering questions [OO LE 01 - HF 01]

Investment policy [SG 01 - 04] Objectives and strategies [SG 05 - 06] Governance and human resources [SG 07 - 08] Promoting responsible investment [SG 09 - 11] Outsourcing to fiduciary managers and investment consultants [SG 12] ESG issues in asset allocation [SG 13 - 15] Asset class implementation not reported in other modules [SG 16 - 17] Innovation [SG 18] Communication [SG 19]

Indirect – Manager Selection, Appointment and Monitoring

Listed Equity and Fixed Income Strategies [SAM 01] Selection [SAM 02 - 03] Appointment [SAM 04] Monitoring [SAM 05 - 07] Outputs and outcomes [SAM 08 - 09]

Direct - Listed Equity Incorporation

ESG incorporation in actively managed listed equities [LEI 01 - 10] Implementation processes [LEI 01 - 10] (A) Implementation: Screening [LEI 04 - 06] (C) Implementation: Integration of ESG factors [LEI 08 - 10] Outputs and outcomes [LEI 12 - 13]

Direct - Listed Equity Active Ownership

Overview [LEA 01] Engagement [LEA 02 - 08] Outputs and outcomes [LEA 09 - 11] (Proxy) voting and shareholder resolutions [LEA 12 - 21]

Confidence building measures

Confidence building measures [CM1 01 - 07]

Export Public Responses

You are in Organisational Overview » Basic information

Basic information

OO 01. Signatory category and services

01.1. Select the type that best describes your organisation or the services you provide.

Non-corporate pension or superannuation or retirement or provident fund or plan

Corporate pension or superannuation or retirement or provident fund or plan

Insurance company

Foundation

Endowment

Development finance institution

Reserve - sovereign or government controlled fund

Family office

Other, specify

          Local Pensions Partnership (LPP) is a pensions services provider for Local Government Pension Schemes (LGPS) and pension funds in the public sector.

01.3. Additional information. [Optional]

Local Pensions Partnership (LPP) is a pensions services provider for LGPS and other public sector pension funds. We aim to help clients reduce pension deficits, improve investment returns and lower costs through our core services:

Investment management and advisory
Pensions administration
Asset and liability risk management

LPP was formed in 2016 through a collaboration between Lancashire County Council and the London Pensions Fund Authority.

In addition to managing pension assets for our investment clients, we currently provide pensions administration services to more than 580,000 members across LGPS, Police and Firefighters pension schemes.

Our Investment Management services are provided by Local Pensions Partnership Investments Ltd (LPPI).

LPPI is authorised and regulated by the Financial Conduct Authority and is a fully-owned subsidiary of Local Pensions Partnership Ltd (LPP) (together the “LPP Group”).

LPPI is additionally the Alternative Investment Fund Manager (AIFM) for GLIL. GLIL is an infrastructure fund structured as an unauthorised Alternative Investment Fund (AIF) and was established by a group of five Local Government Pension Scheme (LGPS) funds (Greater Manchester Pension Fund, London Pensions Fund Authority, Lancashire County Pension Fund, Merseyside Pension Fund, and West Yorkshire Pension Fund).

OO 02. Headquarters and operational countries

02.1. Select the location of your organisation’s headquarters.

United Kingdom

02.2. Indicate the number of countries in which you have offices (including your headquarters).

2-5

6-10

>10

02.3. Indicate the approximate number of staff in your organisation in full-time equivalents (FTE).

50 FTE

02.4. Additional information. [Optional]

The numer of staff employed by Local Pensions Partnership Investments Ltd (LPPI) is 50 fte.

This figure excludes staff providing pensions administration and asset and liability risk management services.

OO 03. Subsidiaries that are separate PRI signatories

03.1. Indicate whether you have subsidiaries within your organisation that are also PRI signatories in their own right.

Yes

03.3. Additional information. [Optional]

Local Pensions Partnership Investments Ltd (LPPI) is a fully-owned subsidiary of Local Pensions Partnership Ltd (LPP).

LPPI is not a PRI signatory in its own right.

In reporting to the PRI, LPP's responses reflect the policies, arrangements, procedures and investment activities being implemented by LPPI as a pool company on behalf of investment clients.

OO 04. Reporting year and AUM

04.1. Indicate the year end date for your reporting year.

31/12/2018

04.2. Indicate your total AUM at the end of your reporting year.

Include the AUM of subsidiaries, but exclude advisory/execution only assets, and exclude the assets of your PRI signatory subsidiaries that you have chosen not to report on in OO 03.2

Total AUM
Total AUM	trillions	billions	millions	thousands	hundreds
Currency
Assets in USD
Assets in USD	trillions	billions	millions	thousands	hundreds

Not applicable as we are in the fund-raising process

04.5. Additional information. [Optional]

LPPI's AUM at 31 December 2018 was £16.8bn.

This total comprises investments under management for Lancashire County Pension Fund, London Pensions Fund Authority, Royal County of Berkshire Pension Fund and GLIL infrastructure.

OO 06. How would you like to disclose your asset class mix

06.1. Select how you would like to disclose your asset class mix.

as percentage breakdown

as broad ranges

	Internally managed (%)	Externally managed (%)
Listed equity	10-50% 16.2	10-50% 24.4
Fixed income	0 0	<10% 4.1
Private equity	0 0	<10% 9.2
Property	0 0	10-50% 10.8
Infrastructure	<10% 4.6	<10% 6
Commodities	0 0	0 0
Hedge funds	0 0	0 0
Fund of hedge funds	0 0	0 0
Forestry	0 0	0 0
Farmland	0 0	0 0
Inclusive finance	0 0	0 0
Cash	0 0	<10% 5
Money market instruments	0 0	0 0
Other (1), specify	<10% 0.1	10-50% 13.9
Other (2), specify	0 0	<10% 5.7

'Other (1)' specified

          LPPI Credit Pool. Multiple externally managed investments spanning a range of credit classes, mainly focused on private credit assets.

'Other (2)' specified

          LPPI Diversifying Strategies Pool. Externally managed investments in a variety of alternative strategies where drivers of return are distinct from global equity and bond markets.

06.2. Publish asset class mix as per attached image [Optional].

06.3. Indicate whether your organisation has any off-balance sheet assets [Optional].

Yes

06.5. Indicate whether your organisation uses fiduciary managers.

Yes, we use a fiduciary manager and our response to OO 5.1 is reflective of their management of our assets.

No, we do not use fiduciary managers.

06.6. Provide contextual information on your AUM asset class split. [Optional]

At 31/12/18 LPPI's assets under management fell across the 7 asset classes below.

Global Listed Equities
Fixed Income
Credit
Private Equity
Infrastructure
Diversifying Strategies
Property

The first six are provided to participating client pension funds through pooled investment vehicles. The last (property) is currently via separate client mandates but in the process of transition to a pooled structure.

In reporting to PRI we have opted not to aggregate LPPI's Fixed Income and Credit Pools as one sum (under PRI's Fixed Income heading).

This reflects that LPPI's Credit and Fixed Income pools are distinct and separate strategies which are of a different size, have different investment characteristics, and are serving different purposes for client pension funds. In maintaining this separation we were conscious of ensuring comparability and consistency between the information we disclose to PRI and the information we report in detail to our client Pension Funds or disclose publicly elsewhere.

100% of LPPI's Fixed Income Pool and +99% of LPPI's Credit Pool are externally managed. The arrangements for ensuring that ESG is being integrated into the selection and monitoring of external managers LPPI appoints to work alongside its internal investment team are explained in detail within responses to the Selection, Appointment and Monitoring module below.

OO 07. Fixed income AUM breakdown

07.1. Provide to the nearest 5% the percentage breakdown of your Fixed Income AUM at the end of your reporting year, using the following categories.

Externally managed

37 SSA

21 Corporate (financial)

21 Corporate (non-financial)

21 Securitised

Total 100%

OO 08. Segregated mandates or pooled funds

New selection options have been added to this indicator. Please review your prefilled responses carefully.

Provide a breakdown of your organisation’s externally managed assets between segregated mandates and pooled funds or investments.

Asset class breakdown	Segregated mandate(s)	Pooled fund(s) or pooled investment(s)	Total of the asset class (each row adds up to 100%)
[a] Listed equity	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%
[b] Fixed income - SSA	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%
[c] Fixed income – Corporate (financial)	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%
[d] Fixed income – Corporate (non-financial)	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%
[e] Fixed income – Securitised	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%
[f] Private equity	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%
[g] Property	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%
[h] Infrastructure	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%
[n] Cash	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%
[p] Other (1), specify	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%
[q] Other (2), specify	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%

08.2. Additional information. [Optional]

OO 09. Breakdown of AUM by market

09.1. Indicate the breakdown of your organisation’s AUM by market.

95.6 Developed Markets

3.1 Emerging Markets

0.1 Frontier Markets

1.2 Other Markets

Total 100% 100%

09.2. Additional information. [Optional]

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