UK - The Co-operative Insurance Society's £1.8bn final salary plan is considering its first investment in hedge funds.
The scheme is currently preparing for an asset liability study later this year where the use of the alternative asset class will be floated.
The CIS Employees Pension & Death Benefit Scheme said trustees met earlier this month to review the results of an independent investment study by Mercer Investment Consulting.
CIS trustee Brian Holden said that while no decision had been made he decided to hire an external consultant to conduct an asset liability study later on in the year.
Holden said that the trustee board will look at the merits of hedge funds as part of the scheme’s portfolio once the liability study is completed.
He said: “We’ll pay due regard to the results of the study, but I don’t think that hedge funds are an investment that we’ll be tapping into for the time being.
“It’s something that we initially looked at and it’s there on the table. It formed part of the investment report, and we’ll consider it on an ongoing basis.”
According to data from the NAPF, the CIS scheme has approximately 74% of assets in UK equities, 11% allocated to overseas equities, 85% UK bonds, 4% in index-linked gilts and 3% in cash.
The Pensions Regulator (TPR) has set out plans to use "new regulatory initiatives" with over 1,000 schemes as it aims to tighten its regulatory grip and boost member outcomes.
HM Revenue and Customs (HMRC) has announced it is delaying the provision of data that will enable pension schemes to confirm the guaranteed minimum pension (GMP) benefits to pay to members until the end of the year.
This week's top stories include an article on climate activists from Extinction Rebellion crashing the PLSA's local authority conference, and an in-depth piece on the Court of Appeal's ruling on the BIC UK Pension Scheme case.
Engagement in pensions is rising but there are still a number of barriers to overcome. Natanje Holt looks at the key issues that need to be tackled