The C$2.6bn (£1.17bn) Montreal based Abitibi-Consolidated Pension Fund may put three mandates out to tender at the end of the year, according to the fund's pensions director, Larry Johnson.
The mandates, each potentially worth C$130m (£59m), would mark the fund's entry into market neutral hedge funds, international bonds and real estate. The potential mandates will follow an asset liability study (ALS) in June and a review of the investment strategy, set to be conducted in the third quarter.
The ALS and review are the result of Abitibi's recent takeover of rival newsprint manufacturer Donohue, and the resultant merging of their pension schemes.
For the mandates to be put out to tender the study must recommend at least an allocation of 5% in each asset class, Johnson said. Funding for the new mandates will be decided by the ALS.
The fund's current asset allocation is: 50% in Canadian fixed income, 20% Canadian equities, 17% in US equities and 13% in non-American equities.
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