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.
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