AUSTRIA - Vereinigte Pensionskasse, the e2bn multi-employer pension fund, is planning to increase its investments in hedge funds and real estate and is also considering an allocation to index-linked bonds.
Wolfgang Pinner, chief investment officer, said that the fund was looking to increase its hedge fund exposure to 3% from 2% and its real estate exposure to 4-5% from 3%.
“We are actively exploring the option of increasing our investments in alternatives as we feel that this is a very interesting area for pension funds.
“For hedge funds, we have yet to decide if the increased allocation will be managed by our existing managers or if we need to appoint new managers for this. We may appoint new managers for real estate.”
He added that the fund was also mulling over a move into index-linked bonds and was likely to hire managers for this asset class.
Current asset allocation stands at 25% equities, 70% bonds and 5% alternatives.
The Pensions and Lifetime Savings Association (PLSA) has announced it will shrink its board by more than one-third as part of a governance overhaul to make it "agile and more appropriate".
Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.
The advent of collective pension systems could help the UK avoid demographic challenges which will make it "impossible" for society to help savers in retirement, experts say.