UK - The £940m Bedfordshire County Council pension fund has appointed Barclays Global Investors (BGI) to a £50m global tactical asset allocation (GTAA) brief.
Geoff Reader, head of pensions and treasury management, said the 6% had been funded through cash reserves.
“We were looking at alternative asset classes and this was one we felt worthy of investing in,” he said. “It has strong diversification benefits and the target we have set means we can still gain equity-like performance, which as a fund we need.”
The target has been set as retail price index plus 5%.
Reader said BGI were appointed because of, “the overall package of the investments they were offering, the processes they said they employed, their research capabilities, and the fees they were charging.”
The fund is also researching a further 6% (£50m) passive allocation to commodities. This allocation would most likely be sourced from the Uk equities portion of the pension fund, Reader indicated.
The pension fund is presently invested 40.4% in UK equities, 25.2% in overseas equities, 18.4 in bonds, 10% to property, and now 6% to GTAA.
By Lisa Haines
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