Multi-Asset Leader Loses Key Manager…as Fund-of-Funds Staffs Up

The largest listed UK fund house has lost one of its key multi-asset managers, while the much maligned fund-of-hedge funds industry takes on new staff to cope with demand.

(August 17, 2012) — One of the largest multi-asset players in United Kingdom fund management has lost one of its leading managers, aiCIO has learned, as its assets in the sector top £60 billion.

Mike Spinks, co-manager of Schroders’ diversified growth and diversified completion funds, is to leave the company, a spokesperson confirmed to aiCIO. Schroders is the largest listed UK asset manager with £194.6 billion in client money.

Spinks joined Schroders in 2004 and in 2007 helped launch the diversified growth fund with co-manager Johanna Kyrklund, who also heads up the multi-asset team. Schroders’ multi-asset funds under management have reached over £60 billion, a spokesperson said. Spinks’ immediate plans are unknown.

Multi-asset solutions have grown in popularity over the past five years as fund managers have created options to give investors exposure to a diversified portfolio of alternative asset classes in one step. The Schroders diversified growth fund has invested in a range of assets, including high yield bonds, leveraged loans, and catastrophe risk.

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As a result of the departure, there is to be a reshuffle within the teams, Schroders said, with Remi Ajewole taking on co-manager duties on the diversified growth fund and Martin Blank working on the diversified completion fund.

Schroders said it had eight portfolio managers in the London multi-asset team and the company had been building staff at fund manager and analyst levels over the past couple of years.

Elsewhere, fund of hedge funds manager Permal has appointed Katie Jupp to a newly created role of institutional business manager, the company confirmed to aiCIO.

Jupp will report to Paul Jeffries, head of UK institutional business, who joined Permal in 2011 from railways pension fund Railpen, where he led its alternatives strategy.

Jeffries said: “Over the past year the business has won a number of sizeable institutional mandates and seen accelerated institutional interest in not only Permal’s traditional funds, but in particular more customised alternative offerings, both of which fall within Katie’s UK remit. Investors are today showing greater interest in customised vehicles, both onshore and offshore, and this involves closer interaction with each client.”

Jupp joins the fund manager from Sussex Partners, a hedge fund advisory with offices in the UK, United States, and Switzerland.

This week, the Massachusetts’ public pension system told aiCIO about its decision to divest from funds-of-hedge funds in favour of directly investing with hedge funds.

(August 16, 2012) – Most major institutional funds are happy with their current real estate investments, and are looking to make new ones over the next 12 months, according to new survey data from Preqin.

These results “suggest an increase in appetite for private real estate funds,” said Andrew Moylan, a real estate data manager with Preqin, in a statement. A total of 70% of investors with at least $10 billion said they are likely to invest in the coming year, while only 26% of investors responsible for less than $1 billion answered the same.

Optimism over real estate trended geographically, as well. Just 32% of investors in Europe are likely to commit to new investments during the next 12 months, while nearly three-quarters (72%) of respondents in Asia said they are seriously considering it. In North America, 32% responded favorably to the idea.

California’s state employees’ pension system (CalPERS) is definitely interested. The $238 billion fund has committed $530 million to two new real estate funds that will target investments in China, according to a Thursday announcement. One of the funds, which will receive $480 million from the West Coast pension, will focus on “high quality office buildings in central business districts and retail malls in well-located, densely populated suburbs in the first and second tier cities” in mainland China and Hong Kong. The remaining $50 million is a second investment in ARA Asset Management’s Dragon Fund. CalPERS’ initial investment earned returns of 8.4% over the last three years. This time around, the fund will primarily target developed, urban property in mainland China, Singapore Hong Kong, and Malaysia.

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“Income growth and urbanization remain the key themes for growth in China,” said Joe Dear, CalPERS CEO, in a statement. “China’s office and retail sectors offer stable rental income and potential for capital value growth.”

Other investors apparently agree with Dear about real estate in general, and Asian property in particular. The majority (73%) of the more than 100 respondents to the Preqin aurvey—regardless of fund size—said their recent real estate investments has met or exceeded their expectations.

Read Preqin’s entire report here.