UK - Warwickshire Pension Fund has invested in property and a fund of hedge funds, after being "steered away" from private equity by its consultancy firm, Mercer.
The £1bn pension fund allocated 10% in total, with a £25m property mandate going each to Threadneedle Investments and Schroder Property Investment Management, and a £50m fund of hedge fund mandate going to Blackstone Alternative Asset Management.
Last September, Global Pensions reported the fund was tendering “alternative” mandates, in what fund trustee Phil Triggs described at the time as “small steps” towards diversification and restructuring.
A spokesman for the fund told Global Pensions today the mandates would be the last investment in alternatives “for a while”. He said £20m of the money for the new mandates had come from cash, with the remainder coming from equities.
He said the fund had “looked at” private equity, but upon the advice of Mercer, had “decided not to go for that at this time”. He added the fund might reconsider this decision “a couple of years down the line”.
However, other UK pension funds can be seen to be embracing private equity: both the £800m Gwynedd Council Pension Fund and the £650m London Borough of Haringey Pension Fund have appointed specialist private equity managers.
Gwynedd Council Pension Fund has awarded Partners Group a mandate worth £37.5m (or 5% of its assets), whilst Haringey has awarded Pantheon Ventures a mandate worth £30m.
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