LGPS Central, one of the UK’s eight local government pension schemes (LGPS), has confirmed the appointment of Longview as an additional fourth manager for its Global Equity Active Multi-Manager ACS sub-fund.
The sub-fund was originally launched in March 2019 and has commitment of six out of eight of its partner funds.
The pool said that the recent procurement process aimed to identify a leading manager that would employ a fundamental approach to investing with a quality-factor bias and a proven track record.
Longview joins the existing managers – Harris Associates, Schroders, and Union Investment – all of which are recognised for their fundamental approach to investment and successes in delivering long-term returns in a responsible way, LGPS Central said.
It added that the sub-fund’s performance will continue to be benchmarked against the FTSE All-World Index (GBP).
According to LGPS Central, the primary objective of the Global Equity Active Multi-Manager ACS sub-fund is to outperform the FTSE All-World Index (total return, in sterling) by 1.5% per annum (net of costs) over rolling five-year periods.
Since its inception, the fund has achieved long-term top-quartile performance and is in excess of £3.5bn of assets under management.
Mark Davies, head of public markets at LGPS Central, said: “The balance between our preferred style biases in our global equities active multi-manager fund offers the advantage of diversifying investment styles.
“Adding Longview, a high-conviction, quality-focused manager with a long-term track record of delivering excess returns for LGPS members, will bring clear benefits. Improving on our already first-quartile track record.”
He said the balanced approach the pool takes enables it to achieve more consistent performance across different market cycles, offering its partner funds a more stable and potentially higher long-term return.
Marina Lund, chief executive officer of Longview, added: “We believe our focus on investing on behalf of our clients for the long term aligns with the objectives of LGPS Central, to deliver long-term retirement solutions for their members.”
She said that Longview’s investment process seeks to generate long-term alpha by investing in a concentrated portfolio of high-quality global equities.
“Our strategy focuses on selecting quality companies, with strong business fundamentals at attractive valuations; we seek companies that can compound free cash flow in a predictable manner over time. We believe that a concentrated portfolio with high active share and disciplined, team-based decision-making will deliver strong and consistent long-term returns,” she noted.
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