Money managers under the microscope
BNY Mellon Asset Management which today acquired Lloyd’s fund management unit- Insight Investment- for 235 million pounds is betting on a boom in liability driven investment (LDI) to boost its coffers over the coming years.
Vice chairman Jon Little told us that Insight’s fixed income and absolute return businesses were expected to grow rapidly, but it’s Insight’s LDI business that seems to have played the decisive role in the deal.
“Over time most pension plans will look at some form of LDI type investment strategy – so this is a huge market for us. And this is not a trend just in the UK. It is an emerging theme in the US, Holland, Germany and Japan,” Little said.
The next steps for BNY would be to take Insight’s capabilities in LDI, fixed income and absolute returns to clients outside UK.
Like most hedge fund firms, Polar Capital has had a tough time during the credit crisis — its full year results out today show assets practically halved between March ’08 and May ’09.
However, at the Reuters Hedge Fund & Private Equity Summit in March, Polar CEO Mark Kary said he didn’t see any further redemptions in the pipeline.