Wednesday, 30 July 2014
Last updated 1 hour ago
Jan 29 2013 | 9:40am ET
A British public pension fund has made its first-ever hedge fund investment.
Fund of hedge funds LGT Capital Partners won the Hertfordshire County Council mandate, which is worth £280 million. Only £70 million of that can be invested in hedge funds, with the rest placed with other alternative asset classes, Bloomberg News reports.
"We didn't feel the portfolio had moved to where it needed to be," David Lloyd, head of the council's pensions committee, told Bloomberg. "We were fairly dominated by equity risk, and we thought a better balance was required."
The "diversified alternative mandate" will be funded by a reduction in Hertfordshire's stock holdings. It accounts for 11% of the pension's assets.
Pfäffikon, Switzerland-based LGT called the allocation "one of the largest mandates focused exclusively on alternative investments ever awarded by a U.K. local authority pension fund."
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…