The investment arm of UK pool Local Pensions Partnership (LPP) has seen its internally-managed global equity large-cap portfolio achieve seven-year total returns of 212.1%, or annualised returns of 17.6%.
The pool announced the portfolio outperformed the MSCI World Index which delivered a total return of 146.0% over the same period of seven years, or annualised returns of 13.7%.
Local Pensions Partnership Investments (LPPI) said this performance places its large-cap portfolio in the top quartile of global portfolio manager peers over the period since inception.
Additionally, the investment manager announced that its global equity small and mid-cap (SMID) portfolio, which was launched in 2018 and is also managed in house, had also achieved strong three-year performance since inception.
It returned 70.8% over the period, or annualised returns of 19.4%, outperforming the MSCI World SMID Index which delivered a total return of 31.8% over the same period, or annualised returns of 9.6%.
This performance places the SMID portfolio in the top quartile of global portfolio manager peers over the period since inception, it said.
LPPI added that both portfolios are managed with a “common philosophy of investing in businesses with long-term sustainable competitive advantages and which are supported by durable runways for growth and high-quality management teams”.
The investment process centres around in-depth analysis of the portfolio holdings with ESG integrated into the process, given the long-term horizon and concentrated nature of the philosophy, it added.
Richard Savage, head of global equities at LPPI, said: “The strong performance of the internally-managed equity portfolios demonstrates that with a long-term philosophy centred around being selective owners of durable business models, we are able to deliver superior performance not only relative to the passive benchmark but also versus the commercial asset management peer group.”
He added that “the success of the portfolios could not have been achieved without a talented in-house equity analysis team and long-term focused clients who have demonstrated their belief and support for our investment approach”.
LPP – a Local Government Pension Scheme (LGPS) pool that manages £22.1bn (€26.3bn) of pension assets as at 30 September 2021 – claimed last week that saved clients £74m since it was launched in 2016.