UK - The £3bn J Sainsbury's Pension Fund has decided to double its allocation to alternatives from 5% to 10%.
Geof Pearson, pensions manager at the fund, said: “We have doubled our allocation to hedge funds, private equity and property because of the increased confidence felt by our trustees towards these asset classes. Our ALM study conducted last year also pointed to a higher allocation to alternatives.”
The fund has increased its allocation to hedge fund of funds managers Lafayette and Financial Risk Management (FRM) from £25m to £90m and allocation to private equity managers HarbourVest and Adam Street Partners have also increased by the same amount. Property managers Arlington Property Asset Managers are now managing a £60m property mandate.
Watson Wyatt is the actuarial consultant to the fund while Frank Russell is the consultant to the fund.
PTL has appointed Karein Davie as a client director in its Birmingham office.
The level of interest rate hedging increased to £29.5bn of liabilities in the second quarter as pension funds continued to de-risk, according to BMO Global Asset Management's research.
UK inflation has risen for the first time since November to 2.5% in July, up from 2.4% in June, thanks to rising fuel costs and the price of computer games.
The number of DB pension scheme trustees targeting a buyout with an insurer has increased significantly in the past five years, latest research from Willis Towers Watson shows.