LIO comprises a principal founder, Paul Dixon, and a wide range of on-call industry experts.
With deep experience and skills ranging across all aspects of Asset Management, Risk Management, Investment Banking and senior executive roles, LIO covers most areas of advisory services required by Institutional Asset Owners.
Current clients include pension funds, insurance companies and university endowments. LIO has extensive recent experience both in the Life Insurance Asset Management industry and working with Private Equity Sponsors.
Client sizes, as measured by AUM, have ranged from £30 million, to over £80 billion.
LIO has a particular interest in providing advice to the foundation, endowment and charitable sectors, where cost-effective expert advice has often not been available.
By targeting these areas, with a focus on quality and impartiality, LIO seeks to stand out from the crowd. If you would like to discuss a project of ay size, or just wish to have a discussion about any particular aspect of investing, please contact us.
** Update: March 2019. Paul will be undertaking an MSc and hopefully a PhD, in Philosophy and Economics at the LSE from September 2019. So new consulting projects may be on hold for a while. **
47b Welbeck Street is on the corner of Bulstrode Street. The entrance is on Bulstrode Street.
Endowments need long-term, secure assets that generate some cash, but most importantly, grow in perpetuity. Ideally they should add diversification from core financial markets.
LIO is looking at an interesting asset class that meets these objectives: Forestry.
LIO would not be the first to explore this, but in a world where 7.0% net per annum is barely attainable without significant risk in conventional markets, this looks interesting. Contact us for more information.
Investors may have noticed an interesting relationship between the FTSE100 and the GBP/USD exchange rate recently. As the pound has plummeted, the FTSE100 has risen. This has nothing to do with ‘cheaper exports’ boosting profits; it is because the FTSE 100 is dominated by multinationals. Their profits are in a mixture of currencies, but many tied closely to the USD. So a $100 profit is now worth £80, not £68. And these companies’ share prices are now higher – in GBP.
Consider what this means for an equity portfolio in the FTSE100 – it is not really GBP risk, but a USD-weighted global basket of currencies.
Endowments generally have little concern with the ‘risk-free’ rate of interest, as they are typically investing in perpetuity. It is very different for Insurance companies, with long-term fixed liabilities; whereas Pension Funds seem to live in both worlds at the same time.
It is also worth reflecting on how EUR Government Bond yields are now unwinding a decade of national convergence. So what defines the EUR risk-free rate?
As a benchmark, it is purely a mater of convenience, and the German Bund yield will do. As a measure of risk though, it is very different. If I have a financial claim in France, I might consider the excess spread (over Bunds) tells me something about the probability of not getting back quite what I expected.