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Hedge Funds explained to Pension Funds

10 March 2011

A new guide is being published today (Thurs) by the National Association of Pension Funds (NAPF) to help pension funds understand hedge funds and how they could use them as part of their investment strategy.

Hedge Funds made simple is being launched at the NAPF Investment Conference in Edinburgh. It offers a clear and understandable explanation of the main features of hedge funds as an investment for UK pension funds.

The guide explains in clear terms how hedge funds work, why pension schemes might want to consider investing in them, and why they might not. It highlights the pros and cons of investing in a hedge fund.

Joyce Martindale, member of the NAPF Investment Council, who helped finalising the guide, said:

“Hedge funds are often perceived as a complex and risky activity. This new guide is a balanced document that clarifies how they operate, helping pension funds understand whether they are appropriate investment vehicles.”

The Hedge Funds made simple guide is sponsored by Liongate Capital Management (Liongate). It is officially launched at the NAPF’s Investment Conference in Edinburgh (NAPF stand) at 5.15pm on Thursday 10th March (today).

Jeff Holland, Managing Director from Liongate, said:

“As a firm, we believe that hedge funds have a relevant role to play in improving pension fund portfolios. We are focused on partnering with these pension funds to deliver optimal results in hedge fund portfolios. We therefore recognise the benefits of assisting pension funds in increasing awareness and comfort with the hedge fund industry.

“The issuance of this guide is timely, as we expect that pension funds in the UK will likely increase allocations to hedge funds as persistently low bond yieldsand modest expected equity risk premia will encourage allocations to alternatives.”

The guide (hard copy) costs £18 for NAPF members and £35 for non-members. It can be ordered online here.

Notes to editors:

1.   Joyce Martindale is Head of Investment Implementation & Change within the Investment Team at rpmi, and its wholly owned subsidiary, Railpen Investments. She also is a member of the NAPF Investment Council.

2.   Other recent made simple guides include Transition Management made simple, Custody made simple, Indices & Benchmarks made simple and Defined Benefit Governance Structures made simple

3.   Liongate Capital Management is an independent, global investment management firm focused on creating and managing fund of hedge funds investment solutions for institutional investors in both commingled funds and tailored, single client portfolios. Our clients include numerous leading public and private pension funds in the UK

4.   The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,200 pension schemes with some 15 million members and assets of around £800 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector.

Contacts:

Paul Platt, Head of Media and PR, NAPF, 020 7601 1717 or 07917 506 683, [email protected]

Christian Zarro, Press Officer, NAPF, 020 7601 1718 or 07825 171 446, [email protected]