Breaches are unlikely given policy implementation depends (only) on the identification of stocks classified within a GICS sub-industry group.
No breaches have been identified to date. Should a breach happen, a conversation would be held with the relevant manager on how to best unwind the position and avoid similar breaches in the future.
Our Policy applies to all asset classes and incorporates a list of excluded companies and a monitoring process.
In public markets any identified breach would result in the holding being liquidated. In private markets and alternative asset classes, information on investee companies may be more limited than in public markets. In this case, LPPI will work closely with delegate managers to avoid any investment in excluded companies.If unintended investments are identified LPPI will seek divestment through active redemption or, if divestment would impose a material financial detriment, through natural maturity of the fund.