Key Takeaways
- • LGT Capital Partners has won a GBP280m multi-alternatives mandate from Hertfordshire County Council, one of the largest mandates focused exclusively on alternative investments ever awarded by a UK local authority pension fund.
- • The mandate spans nine alternative asset classes, including hedge funds, commodities, insurance-linked securities (ILS), property, and private equity.
- • LGT developed its multi-alternatives offering for UK local authority pension funds in 2011 to address their difficulties in accessing alternative investments.
- • The mandate gives the pension fund an actively managed portfolio, access to external managers, and a single reporting solution for its alternative investments, according to LGT CEO Roberto Paganoni.
Summary
LGT Capital Partners has won a GBP280m multi-alternatives mandate from Hertfordshire County Council, according to Hedgeweek. The mandate is among the largest focused exclusively on alternative investments ever awarded by a UK local authority pension fund. Reports from Artemis and Unquote describe the allocation in similar terms, with Artemis noting that the mandate includes insurance-linked securities.
The mandate covers hedge funds, commodities, insurance-linked securities, property, private equity and other alternative asset classes. Roberto Paganoni, chief executive of LGT Capital Partners, said the mandate will give the pension fund an actively managed portfolio across nine alternative asset classes, access to best-in-class external managers, and a single reporting solution for its alternative investments.
LGT said it recognised the difficulties UK local authority pension funds face in accessing alternative investments. In 2011 the Swiss-based alternatives manager developed a multi-alternatives offering specifically for these investors. LGT describes itself as a specialist in multi-alternatives, co-investing alongside the LGT Endowment in the same underlying alternative portfolios. The firm reports more than USD 85 billion in assets under management and over 600 institutional clients.
The award is one of several recent LGT mandates reported in the trade press, including a separate multi-alternatives mandate for Shell and a final close of the Crown Asia fund.
The mandate covers hedge funds, commodities, insurance-linked securities, property, private equity and other alternative asset classes. Roberto Paganoni, chief executive of LGT Capital Partners, said the mandate will give the pension fund an actively managed portfolio across nine alternative asset classes, access to best-in-class external managers, and a single reporting solution for its alternative investments.
LGT said it recognised the difficulties UK local authority pension funds face in accessing alternative investments. In 2011 the Swiss-based alternatives manager developed a multi-alternatives offering specifically for these investors. LGT describes itself as a specialist in multi-alternatives, co-investing alongside the LGT Endowment in the same underlying alternative portfolios. The firm reports more than USD 85 billion in assets under management and over 600 institutional clients.
The award is one of several recent LGT mandates reported in the trade press, including a separate multi-alternatives mandate for Shell and a final close of the Crown Asia fund.
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