US - The Pension Benefit Guaranty Corporation (PBGC) has hired three managers to manage a combined US$2.5bn in private equity and real estate assets.
PBGC director Charles Millard said: "They will be required to share information among themselves and give the PBGC unrestricted access to all intellectual firepower within their respective firms."
He added: "These relationships will benefit the PBGC, not only with private equity and real estate investments, but in risk analytics and mitigation, consolidated reporting and staff augmentation."
BlackRock will provide the PBGC with risk management services through BlackRock Solutions; GSAM said it will provide access to co-investment opportunities; and JPMorgan will add advisory services onto its asset management role.
The hirings are a result of a request for proposals issued on August 1.
In February, the organization implemented a new asset allocation which included a 10% allocation to alternative investments. The PBGC also allocated 45% of its assets to a diversified set of fixed-income investments and 45% to diversified equity investments.
Strategic partnerships - a set-up that typically allows managers more leeway over the types of investments they manage and input over aspects like risk management and asset allocations - have picked up steam among other US investors as they move into more complicated investments.
The South Carolina Retirement System Investment Commission last year agreed to invest 19% of its total assets in strategic partnerships. Officials at the system argued it allows for "economies of scale and pricing power, access to deal flow, idea generation and a relationship that would allow for knowledge transfer," according to minutes from a May 15 commission meeting.
The Teacher Retirement System of Texas launched a $4bn strategic partnership plan in April.
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The Royal Mail Defined Benefit Cash Balance Scheme (DBCBS) has ended its first full-year with a £9m actuarial surplus, the company says.
The Salvus Master Trust has launched a mobile app for members after employers revealed they wanted their members to have more access to online tools.
A rise in UK inflation back above the Bank of England's 2% target rate will not change the thinking of its Monetary Policy Committee with regards to interest rates, experts have said.