UK/EUROPE - Global fund manager Standard Life Investments (SLI) has launched a new Strategic Solutions Unit targeting European pension and insurance funds.
The unit, which will focus on developing liability-driven and capital efficient investment solutions for institutional investors, will be headed by Euan Munro (pictured) and was created in response to a high level of interest from institutional clients, SLI said in a release.
The company manages about £2bn in liability driven or capital efficient strategies.
“There have been many instances recently where fund managers, including ourselves, have out-performed client’s chosen benchmarks but left them disappointed,” Munro said.
“To avoid this happening again we intend to understand clients needs better and deliver investment solutions that will help them fulfil their obligations – be that paying pensions or insurance claims – with the minimum compromise on return.”
He added: “We have seen an increasing demand from investment consultants and institutional investors for investment strategies driven by their own liability requirements rather than strategies that deliver benchmark or index returns.”
The unit’s inception will see Julian Coutts, who left SLI eight months ago, return to lead the unit’s research and development effort.
SLI said while demand for these products stemmed from the European market, the solutions were “generic” and would be applied to clients globally.
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