Schroders to set up Britain’s first new-style private asset fund

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The Business Times – SCHRODERS won regulatory approval to set up the UK’s first private asset fund targeting individuals.

The UK’s largest standalone asset manager is the first firm to receive regulatory approval for a so-called Long Term Asset Fund, said a statement on Thursday (Mar 9). The LTAF is a new regulatory structure designed to give sophisticated investors access to illiquid assets, including private equity and venture capital.

Schroders will market the fund to defined contribution and other eligible investors, added the statement.

“We feel strongly that a wider range of UK savers must be able to take advantage of the robust returns and diversification benefits that investing in private assets can bring,” chief executive officer Peter Harrison said in the statement.

Schroders is part of a growing cohort of traditional fund houses looking to push deeper into private markets to compete against low-cost index funds that have been luring away clients. Other asset managers including Abrdn and M&G are also looking for ways to bring semi-liquid funds to the UK’s wealth market.

The Financial Conduct Authority said it has worked with the Bank of England, the Treasury and the industry to “create an environment where investment in longer-term, less liquid assets, by investors who understand the risks, can flourish”, said a separate statement from the regulator on Thursday.

BlackRock is starting two private equity funds targeting wealthy individuals in Europe, as the world’s largest asset manager seeks to tap rising appetite for alternatives among the rich.

The New York-based group expects to raise about one billion euros (S$1.4 billion) or more for the new European Long-Term Investment Funds, said Edwin Conway, global head of BlackRock Alternatives.

Image by: Pixabay

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Edmund Shing, PhD

Global Chief Investment Officer
BNP Paribas Wealth Management

Edmund has over 29 years of experience in financial markets in a wide variety of positions, ranging from proprietary trading to portfolio manager in a number of financial institutions in London and Paris.  He previously held the role of Global Head of Equity and Derivative Strategy at BNP Paribas in London from 2015 to 2020, and has been Chief Investment Officer at BNP Paribas Wealth Management since November 2020.

Edmund is responsible for piloting our investment strategy and will continues to rollout out recommendations and themes with actionable advice that brings our expertise to our clients and support to our client-facing teams.  In this time of change, his expertise in following and anticipating markets is a true value added for both our customers and those at Wealth Management who serve them.

Edmund has a PhD in Cognitive and Computing Science from the University of Birmingham in the United Kingdom, and has done advanced studies in Knowledge-Based Systems and in Experimental Psychology.  He is an EFFAS-certified financial analyst. He has also authored the book “The Idle Investor” published by Harriman House in 2015, proposing 3 simple investment strategies that take only a few minutes to execute per month.

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