UK - Equity increases have boosted J Sainsbury Pension and Death Benefit Scheme assets from £1.8bn to £2.1bn.
Its annual report and accounts show the biggest returns came from Japanese equities (46.5%), European equities (37.9%) and UK equities (31%). Overall, it saw a 20.7% investment return net of fees.
The report also reveals that the fund has made an initial 3% allocation to alternative investments and plans to increase this to as much as 10% at the expense of equities which have fallen from 70% to 67% of assets.
The scheme has appointed Aberdeen Property Investors to build up a £100m portfolio (5% of the fund) over the next two years; La Fayette Investment Management and Financial Risk Management to hedge fund mandates and HabourVest Partners to invest in private equity.
In two other key changes of strategy, the number of assets run on an index basis has been reduced from 49% to 40% and is using several managers for the same asset class to cover tracking errors.
The scheme has dropped Barclays Global Investors from a multi-national equities index fund and reappointed it to run active US equities along with the US-based manager Jacobs Levy Equity Management.
Changes to the scheme rules revealed in the accounts show that the fund has tightened rules on ill-health and spouses’ pensions.
The report also reveals that the fund has the unclaimed refunds of personal contributions for 26,403 former staff who left with less than two years’ service.
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers