Lyxor’s fiduciary platform, also known as Lyxor’s Enhanced Architecture Program (LEAP), has doubled its assets under management in the last year to approximately EUR16 billion (USD 18.7 billion), as fiduciary services are increasingly appealing to varied types of investors around the world.
Initially catering mostly to pension funds, the platform has gradually extended its reach to wealth managers, foundations, and insurers, seeking new means to address the difficulties posed by the challenging market environment and demanding regulations.
Lyxor’s fiduciary platform seeks to empower investors towards achieving their goals by implementing their desired infrastructure and investment objectives via a collaborative, top-down approach. It allows them to choose either a comprehensive solution or individualised modules, such as fund due diligence, portfolio construction, dedicated managed accounts, advisory, and much more.
The current framework has been years in the making and seeks to continuously grow and improve, in order to adapt to the ongoing needs of clients and prospects. The substantial increase in assets can be attributed to a combined effort by all Lyxor entities. In particular, Lyxor has been awarded fiduciary mandates to assist in the financial management of employees liabilities by a large European bank, a large European corporation, as well as a US public pension plan. These partnerships are a testament to Lyxor’s ability to manage pension systems involving complex governance issues globally.
The European insurance sector was another area of expansion, as insurers are looking for solutions to enhance returns and manage risks within a constrained regulatory capital framework.
“Financial institutions are increasingly outsourcing their asset management needs in order to concentrate on their core business. Lyxor is well-placed to tap into that trend and act as a fiduciary advisor as its business model combines an open-architecture platform with engineering, design, and risk management expertise. In an environment of intensifying cost, an asset manager like Lyxor needs to be able to create value for its clients along the full chain of services,” says Amber Kizilbash (pictured), Global Head of Sales and Client Strategy for Lyxor SAS.
Lyxor Asset Management Inc, Lyxor SAS’s subsidiary in New York, has been a driving force to the success of the growth of the fiduciary platform, attributing approximately 50 per cent. Lyxor Asset Management Inc. is a fiduciary to one of the largest US public pension plans.
“In the past couple of years, we have seen an increase in demand at a fast pace from pension funds in particular seeking for new drivers of diversification in their portfolios. We anticipate that this trend will continue. Seeing how successful our efforts have been in the US and Canada, we are gradually expanding our client base while looking to penetrate new regions in the Americas,” commented Nathanaël Benzaken, CEO of Lyxor Asset Management Inc.