The Avon Pension Fund has allocated GBP 373 million to five fund of hedge fund managers, including Stenham Asset Management, in the largest UK local authority mandate since West Yorkshire.
The Avon Pension Fund, which runs assets for Bath and North East Somerset council in the UK, has allocated USD 19 million to Stenham Asset Management for investment into one of its range of hedge fund of funds.
Stenham has been managing and advising on multi-manager hedge fund portfolios since 1988. This investment will be in the Stenham Universal II Fund which, since its inception in July 2003 up to the end of March 2007, has produced an annualized return of 9.33% with a volatility of 2.49%.
In total, Avon allocated GBP 373 million, representing 10% of assets, to five fund of hedge fund managers. The selection process initially attracted proposals from more than 84 fund of hedge fund managers and the investment was handled via the bfinance platform.
Lynda Stoelker, Investment Analyst at Stenham, said: "It is most gratifying to be included in this important allocation by Avon, who demonstrated a keen interest in the low volatily, consistent investment approach that Stenham employs. We look forward to further developing our relationship with them and expanding our business through the increasing allocations by UK institutions to alternative investment strategies."
Stenham is a broadly based wealth management business with nine offices in the UK, the Channel Islands, Switzerland, Luxembourg, the Netherlands and other jurisdictions.
The Group provides financial services and creative financial solutions for NHW clients, family offices and institutions, specialising in alternative investments including absolute return strategies and commercial property. The Group offers other services including trust and consulting, business finance and a family office advisory service. The emphasis is on tailoring solutions to the client's precise requirements rather than marketing products "off-the-shelf".
Stenham's Asset Management division currently manages and advises on USD 1.9bn of assets across a number of different alternative strategies.