The Leicestershire County Council pension scheme has appointed Fauchier Partners to run a £105m (€155m) fund of hedge funds mandate, as it became the 12th UK local authority to invest in hedge funds this year.

The council said the size of the mandate amounted to 5% of the scheme's total assets. Its aim is to diversify its portfolio with an investment that it hopes will produce positive and stable returns regardless of whether the markets are rising or falling. It is targeting an annual investment return of 4 percentage points above the London interbank offered rate.