UK - The £278m London Borough of Hounslow Pension Fund has decided to conduct an asset liability study with an increase in allocation to corporate bonds most likely.
Following an actuarial valuation by Watson Wyatt, which revealed the fund is 86% funded, Hounslow decided an ALS was needed. Watson Wyatt will carry out the ALS which is expected to be completed later in the summer.
The fund currently employs Edinburgh Fund Managers and Merrill Lynch Investment Managers on a balanced basis. Nearly two thirds of the fund is invested in equities.
Borough Treasurer Alan Steele ruled out a previously rumoured search for hedge funds but said private equity may be examined. The scheme has held a private equity allocation of 2% for the last 15 years and may consider upping it.
By Luke Clancy
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