UK - The £6bn Strathclyde Pension Fund and the £3.5bn Prudential Staff Pension Scheme are mulling investments in alternatives.
Strathclyde may foray into hedge funds while Prudential is considering investments in high-yield, private debt placements, emerging market debt and hedge funds.
Exact details of the investments were unavailable and officials said that they would be worked out once the funds received approval from trustees.
Prudential, which is being advised by Watson Wyatt, has cut its exposure to equities to 50% from 77.5%, starting January 1, 2004. Allocations to bonds have increased to 32.5% from 10% and 5% was allocated to private equity. Property remains unchanged at 12.5%.
Meanwhile Strathclyde increased its allocation to property to 10% (8%) and corporate bonds 3% (2%), and reduced its UK exposure to 38% from 46%.
The fund has moved from balanced to specialist management and appointed Western Asset to a bond mandate. Henderson Global Investors, the fund’s existing bond managers were retained. Both mandates represent around 5% of total fund assets.
The fund also appointed Baillie Gifford, Capital International and Schroder to run global equity mandates, representing around 15% of total fund value.
Goldman Sachs International was transition manager.
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