Newsquest allocates 10% to hedge funds
UK - Newsquest Pension Scheme has awarded two fund of hedge fund mandates, valued at £40m (€50m), which is equivalent to 10% of scheme assets.
Scheme trustees have agreed to invest £25m in a diversified multi-strategy fund of hedge fund managed by Stenham Universal Fund, while a further £15m has been awarded to Liongate Capital Management's multi-strategy fund.
The £400m pension fund for the Newsquest Media Group, the second-largest publisher of regional and local papers in the UK, said the 10% allocation is part of the scheme's investment strategy of "seeking diversification of assets and superior risk adjusted returns".
David Coates, chairman of trustees said: "After a comprehensive selection process which resulted in final proposals from several strong candidates, the trustees felt the combination of Stenham and Liongate funds of hedge funds products best suited our desire to achieve superior returns in a risk-controlled manner."
Phil Irvine, director of advisory services at Liability Solutions, the firm which managed the tender process, said the selected managers were both able to demonstrate an ability to add value in different market conditions and deliver returns in a "manner broadly de-correlated to major market indices".
The Newsquest pension scheme was the subject of a parliamentary motion at the end of last year which highlighted concerns about changes to the scheme, including a move to make employees pay increased contributions so they may receive the same level of benefit or to move to a less generous pension scheme. (See earlier IPE.com article: Newsquest proposals slammed by MPs)
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