L&G Hires for Cross-Border De-risking | Chief Investment Officer

Legal & General (L&G) is seeking to grow its international de-risking capabilities with the appointment of a new director of strategic transactions.

Matt Wilmington joined from consultancy firm Aon Hewitt, L&G said in a statement, and will lead on “strategic longevity, buy-in, and buyout transactions, focusing particularly on our large multinational client relationships.”

L&G broke new ground in 2014 with the completion of a multi-country pension de-risking project with automobile parts manufacturer TRW. The transaction involved a £2.5 billion ($3.6 billion) buyout of the company’s UK pension, as well as smaller de-risking moves for its Canadian and US pensions.

In a 15-year career at Aon Hewitt, Wilmington held a number of roles including overseeing the consultant’s non-UK pension-risk transfer business. Most recently, he was a partner in the group’s risk settlement team. He led advice on “a number of UK-based, large-scale, complex de-risking transactions,” L&G said.

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In the last 18 months, Aon Hewitt has advised on notable deals such as Alcatel-Lucent’s £300 million buy-in, completed at the start of this year, and a £675 million buy-in for the Lehman Brothers UK pension in May 2015.

“I’m confident that the strength and depth of the pension-risk transfer team will result in many innovative transactions being completed over the coming months and years, and I’m excited to be playing a part in that,” Wilmington said.

The International Forum of Sovereign Wealth Funds will collaborate with the Hedge Fund Standards Board to improve governance, transparency, and interest alignment.

Sovereign wealth funds will have a more direct say in hedge fund transparency issues after a deal was struck between two industry bodies.

The new partnership between the International Forum of Sovereign Wealth Funds (IFSWF) and the Hedge Fund Standards Board (HFSB) is intended to “raise standards in the financial industry” through shared knowledge and experience, said Adrian Orr, IFSWF Chair and CEO of the New Zealand Superfund.

The IFSWF pledged to work closely with the standard setting body for the hedge fund industry to ensure better alignment of interests between funds and managers.

“This relationship will ensure that sovereign wealth funds have a voice in the hedge fund standard setting process,” said Orr in a statement.

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Orr, who took on the role as chair of the $5.5 trillion group of SWFs in October, said he would use the position to enhance transparency in the sector.

“Sovereign wealth funds must continue to embrace the principles of good governance, accountability, and transparency to earn respect for their operating and investment integrity,” he said.

The new relationship between the IFSWF and the HFSB will include seminars that bring together members of both organizations, as well as collaboration on issues of mutual interest, including governance, transparency, and financial stability. The HFSB will make its resources accessible to the sovereign fund community and invite these investors to take an active part in the standard setting process.

“The HFSB relies on hedge fund managers and investors to work together to set industry standards, and we welcome closer dialogue with sovereign wealth funds,” said HFSB chair Dame Amelia Fawcett.

Last year, data firm Preqin forecast an increase in interest in hedge funds among sovereign investors as governments began to rely more on drawing down capital.

“Hedge funds can offer a liquid, alternative return stream and we may see more sovereign wealth funds rebalance in the asset class’s favor in order to diversify into an asset that can offer risk-adjusted returns and regular access to their capital,” the report said.