UK - The £840m Dorset County Council Pension Scheme has appointed Pioneer Alternative Investments to manage a £22.5m fund of hedge funds mandate.
The mandate will be invested in Pioneerís flagship Momentum AllWeather Fund - a low-volatility fund of hedge funds which has delivered annualised returns of 8.9% with volatility of 3.3% since it was established in 1995.
Pioneer Alternative Invest-ments head of UK sales and distribution, Nigel Meir, said: “The case for allocating to funds of hedge funds is powerful if the credentials are right: they can bring good diversification to a portfolio and a fund like AllWeather has the potential to deliver reliable returns.”
This move comes in a bid by the Dorset scheme to diversify and look for absolute returns over cash.
A Dorset County Pension Fund spokesman said. “In this highly specialist area, we selected Pioneer Alternative Investments for the strength of their process, their performance record and the stability of the investment team.”
The scheme has around 21,000 active, 6000 deferred and 10,000 pensioner members.
Businesses are experiencing auto-enrolment data error rates of up to 50%, posing questions over the reliability of pension records, Pensionsync says.
A nationwide survey of committee and local pension board members of the Local Government Pension Scheme has revealed high levels of confidence in all areas of their responsibility.
UK inflation unexpectedly rose to 2.7% in August, beating analysts' expectations of a drop to 2.4% from 2.5% the previous month.