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Impact Investing

IPE special report May 2018

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Leicestershire chooses hedge funds manager

UK - The £1.9bn (€2.8bn) Leicestershire County Council pension fund found a manager for a £105m targeted return mandate.

Fauchier Partners will target a return of LIBOR+4% p.a. by constructing a bespoke portfolio of hedge funds.

To fund the mandate, Leicestershire will use its cash reserves, divest from overseas bonds as well as reduce the weighting of UK corporate bonds.

This means the mandates of UBS Global Asset Management and Morley Fund Management will be reduced in size slightly.

The remaining two managers in the final beauty parade "used a variety of methods to achieve the required target return," but eventually opted for Fauchier's hedge fund approach, the fund stated.

Hymans Robertson advised the Leicestershire fund during the search.

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