It is designed to help investors in the Lloyd’s market generate risk-adjusted returns on capital and access a broader range of investment opportunities
Lloyd’s of London yesterday (29 March 2022) partnered with open architecture firm Schroders Solutions on its new investment platform.
Schroders manages £150bn of global assets for insurance companies and has long standing partnerships within the Lloyd’s market.
This new platform will consist of a series of funds across asset classes that are made available to Lloyd’s market investors who can freely invest in and allocate between them.
It is designed to help investors in the Lloyd’s market generate risk-adjusted returns on capital and access a broader range of investment opportunities, including private assets.
Meanwhile, third party managers will be selected for each fund and be advised by Schroders Solutions.
Therefore, Lloyd’s Central Fund will act as a co-investor, catalysing the launch of the funds while enhancing the risk return profile of the Central Fund.
Burkhard Keese, Lloyd’s chief financial officer and chief operating officer, said: “We’re focusing on profitable and sustainable growth at Lloyd’s – which is why we’ve created this new platform to make it easier for investors to access and co-invest in the Lloyd’s market.
“Those joining the platform will benefit from greater scale and investment expertise, alongside the ability to prioritise green and socially responsible investments in our market. So, it’s really been designed with the future and profitable growth in mind.”
By consolidating market investment funds under one umbrella, users of the new platform will benefit from collective economies of scale and resultant lowered costs.
Eleanor Bucks, Lloyd’s chief investment officer, said: “It’s really exciting to announce the appointment of Schroders Solutions as our delivery partner for our new investment platform.
“The benefits will be different for each investor – for some, it will be accessing fund strategies like private assets, where scale can sometimes prove a challenge.
“For others, it will be the smoother decision-making enabled by Schroders Solutions’ bespoke strategies and best-in-class manager selection.”
As a reflection of Lloyd’s core values and purpose, ESG criteria is embedded in the platform to support the delivery of net zero objectives both for investors and the Lloyd’s market
Peter Harrison, Schroders group chief executive, added: “We have applied intense focus on developing capabilities in private assets and solutions. This is a landmark appointment for Schroders and reflects how our market capabilities can help solve complex investment requirements for clients.
“Bringing together over 500 years of heritage and expertise in investment and the insurance market creates a unique and innovative relationship, focused on the individual investment needs of Lloyd’s and its syndicate members.”
Bucks said: “We look forward to good conversations with market participants as we set up the platform and to welcoming new funds later in 2022.”