UK - The £26.6bn BT Pension Scheme and the £12.8bn Royal Mail Pension Plan have invested a total of £51m in Henderson Global Investors' UK Shop Fund.
The BTPS has invested £36m while the Royal Mail scheme has put £15m into the Henderson fund, which will invest in city centre shops.
The schemes are among the first investors in the fund, which aims to achieve returns above the standard retail component of the Investment Property Database index.
The investments were made by Hermes Pensions Manage-ment, and associate director Richard Low said: “Our investment in this fund gives us exposure to a sector where we are currently underweight and expect to receive strong returns.”
The Henderson fund is based in Jersey and it will have the ability to borrow – in order to boost returns – a maximum of 50% of its gross asset value.
The fund has an initial portfolio of 13 properties, which have a combined value of more than £100m.
Henderson fund manager Sarah Slater said: “This fund offers investors the opportunity to invest in properties where above-average rental growth may be anticipated, while at the same time preserving a market level of income from the portfolio.
“We will be seeking to maximise returns through active asset management.”
Canada Life has signed a £351m bulk annuity contract insuring the pensioner liabilities of 2,510 members and dependents in the AA UK Pension Scheme.
In this week's Pensions Buzz, we want to know if you believe there is ever a case for combining retirement savings products with other savings products, and if the PPF levy for sponsorless schemes is appropriate for DB consolidators.
The Insolvency Service has disqualified four directors of trustee firms from running companies for a total of 34 years following an investigation.