JLT Employee Benefits (JLT) has advised the £1.5 billion Cornwall Pension Fund on the appointment of Man FRM to manage its hedge fund allocation, which has a target size of 8% of the Fund. This results from an overall investment strategy review, which led JLT to undertake a full open market procurement exercise with Cornwall Council.
The allocation will be managed via Man FRM’s Managed Accounts solution, which offers tailored solutions for LGPS Funds looking to invest into hedge funds, providing complete transparency and legal control of the assets, whilst also allowing all LGPS Funds to benefit from a sliding management fee scale based upon their collective assets.
Jignesh Sheth, Director, JLT Employee Benefits, commented: “In our search, Man FRM were able to demonstrate a particularly high level of transparency of underlying investments, robust infrastructure and a bespoke investment approach tailored to the needs of the Cornwall Pension Fund in order to specifically complement the existing portfolio. Cornwall Council and JLT therefore concluded that Man FRM was the most capable advisor to support the Cornwall Pension Fund in setting up a customised vehicle for its hedge fund allocation.”
Matthew Trebilcock, Pension Investment Manager at the Cornwall Pension Fund, said: “We very much look forward to working closely with Man FRM and JLT to build a diversified hedge fund portfolio that will provide the best solution for the Cornwall Pension Fund as part of the overall investment strategy. Accessing the underlying hedge funds via Man FRM’s Managed Accounts not only provides our Fund with ownership of the hedge fund investments, but also allows for greater transparency of the underlying holdings. This feature is not always available through the traditional fund of funds offering and was a major consideration for us. In addition, the sliding management fee structure provides a real collaboration opportunity for all LGPS Funds in the hedge fund asset class.”
Luke Ellis, President of Man Group (of which FRM is a wholly owned subsidiary), commented: “We are delighted that the Cornwall Pension Fund and JLT have recognised the quality and value represented by the Man FRM proposal. We have long recognised that investors demand the highest standards in transparency, control and governance. Those critical factors are central to our managed account based portfolio design and construction developed over the last 15 years. Additionally, we fully acknowledge the current pressure the LGPS Funds are under to achieve cost reductions and we have embraced this by treating the LGPS as a single investor with regards to pricing, but as quite different investors with regards to the eventual solution provided. Going forward, Cornwall and other LGPS Funds will see their costs of management fall as their collective assets grow, whilst each having their own customised hedge fund portfolios managed by a recognised pioneer in the field.”
Notes to Editors
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About JLT Employee Benefits
JLT Employee Benefits is one of the UK’s leading employee benefit providers offering a wide range of benefit and pension services, including administration, actuarial and pension consultancy, investment, Self Invested Personal Pensions (SIPPs) and Small Self Administered Schemes (SSASs) administration, flexible benefits, healthcare, benefit communication and financial education.
JLT Employee Benefits employs over 2,200 professionals throughout the UK and in 2013 had revenues of £172m in UK & Ireland.
Pensions and employee benefits companies within the JLT Employee Benefits group of companies include: JLT Benefit Solutions Ltd, Profund Solutions Limited, JLT Wealth Management Limited, JLT Investment Management Limited and Independent Trustee Services Limited. JLT Employee Benefits is part of Jardine Lloyd Thompson Group plc.
About Jardine Lloyd Thompson Group plc
Jardine Lloyd Thompson is one of the world’s leading providers of insurance and employee benefits related advice, brokerage and associated services. JLT’s client proposition is built upon its deep specialist knowledge, client advocacy, tailored advice and service excellence.
JLT is quoted on the London Stock Exchange and owns offices in 41 territories with more than 9,500 employees. Supported by the JLT International Network, it offers risk management and employee benefit solutions in 135 countries.
The Pensions Management Institute (PMI)
The PMI is the professional body which supports and develops the experts who run UK pension schemes. It has the broadest skills base of pensions professionals and trustees in the UK, with some 6,500 members dedicated to establishing, maintaining and advancing the highest levels of pensions knowledge.
PMI members are responsible for managing and advising some of the largest institutions in the world and taking key decisions on substantial financial matters. With some £1 trillion invested in UK pensions, PMI members have a vital role to play in shaping the nation’s financial future. With 37 years of successful operation behind it, the PMI is an organisation at the cutting edge of pensions.
For full details of PMI’s qualifications, membership grades and ongoing support services visit: