Greater Manchester Pension Fund is stepping up its annual investment in venture capital by £10m to £40m because it is "struggling to achieve the 3pc exposure target".
The pension fund – which has £5.6bn worth of assets – will implement the increase in its annual commitments from the beginning of next year and was agreed at the GMPFs quarterly trustee meeting on Friday.
GMPF head of pensions investments Steven Taylor said the pension fund had decided to increase the scheme's commitments in light of the “spectacular performance” of venture capital over the last 12 months.
He said: “We are currently struggling to meet our 3pc exposure target so we are increasing our scale of annual commitments to ensure we meet it.”
The £40m will be invested in five new venture capital funds which the GMPF chooses to invest in every year.
The funds are still to be chosen and will depend on which company is raising funds at the time as well as what decision making process the GMPF's trustees decide to adopt.
GMPF has a rolling programme in commitments to venture capital funds and it reviews the performance of the funds regularly.
It currently invests £94m in 71 active venture capital funds managed by specialist managers which include Westport Private Equity, Apax Partners, Candover, Granville Baird, Murray Johnstone, Schroder Ventures and UBS Capital.
By Michael Schiniou.
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