UK - The £1bn Kvaerner Pension Fund has appointed JPMorgan Alternative Asset Management to run its first allocation hedge funds.
The fund manager – which is part of JPMorgan Fleming Asset Management – won a £25m multi-strategy hedge-fund-of-funds mandate.
Aker Kvaerner vice-president, group pensions John Starling said the engineering giant had made the allocation because it felt funds-of-hedge-funds could achieve “equity-like returns with bond-like volatility”.
“The trustees of the Kvaerner Pension Fund were seeking to reduce the risk, or volatility, in the fund. This aim led to a hedge fund investment and the experience, investment process and risk management provided by JPMorgan, appeared to offer the most attractive entry into this asset class,” he said.
JPMorgan vice-president Scott Stein said: “Kvaerner’s allocation demonstrates the growing trend we are seeing among institutions in the use of hedge fund strategies.”
The scheme’s other fund managers are Merrill Lynch Investment Managers, State Street Global Advisors, and its own in-house operation, Kvaerner Pensions Investment Management.
Kvaerner’s actuary and investment consultant is Lane Clark & Peacock.
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