We aim to generate shareholder value through a portfolio of financial investments while ensuring adequate funds are available for L1 strategic investments.
Chief Investment Officer L1 Treasury
L1 Treasury manages the liquidity and financial investments of L1 Investment Holdings. Its primary role is to ensure that adequate funds are available for L1’s strategic investments. When divestments are executed or dividends received, L1 Treasury manages the funds.
L1 Treasury’s mandate is to maximise returns on its financial investments within agreed constraints of liquidity and volatility, tailored to L1’s capital allocation.
L1 Treasury combines a portfolio of liquid fixed income securities with higher yielding investments such as direct loans and real estate with investments in the financial markets, both direct and via hedge funds. L1 Treasury also has the ability to enter into financing arrangements to further enhance its liquidity or returns.
2016 was an eventful year in global politics and financial markets. After a sharp correction in equity and credit markets at the start of the year and a big rally in government bonds, markets remained relatively calm in the face of a Brexit vote and the outcome of the US elections.
In the end, equity, credit and fixed income markets ended the year positive. Such a combination may not happen again for some years to come because interest rates are starting to move up.
After a challenging start to the year, L1 Treasury’s portfolio of financial investments performed well and ended the year with a return on total assets of 2.2% (gross). Total assets under management stood at USD $9.3 bn at the end of 2016.
L1 Treasury’s return on assets was achieved while maintaining substantial amounts of liquidity. L1 Treasury maintains balances in cash and money market funds as well as borrowing facilities so that sufficient funds are available for strategic investment opportunities.
During 2016, L1 Treasury held on average USD $1.5 bn of cash or cash equivalent securities and maintained committed borrowing facilities of an additional USD $1.4 bn.
Highly experienced global team
The L1 Treasury team is international with employees from 10 different countries. In the course of its activities, L1 Treasury deals with 20 of the largest international banks.
The team is highly experienced and contains all the specialities that would be found in an institutional asset management company, from risk management and investment professionals to technology and infrastructure experts.
L1 Treasury is responsible for implementing the investment strategy within the risk limits and parameters set by its Investment and Risk Committee. The Committee is chaired by Ed Eisler, founder and Chief Investment Officer of Eisler Capital, a global macro hedge fund, who had a distinguished 20-year career at Goldman Sachs.
L1 Treasury assets
as at 31 December 2016