UK - Barclays Global Investors has launched a pooled commodities fund designed to allow easy access to the asset class for pension funds.
The fund aims to attract schemes by offering positive correlation with inflation and negative correlation to equities and bonds. The fund will invest in a portfolio of commodity-related derivative instruments and aims to achieve a return comparable to the total returns of the Goldman Sachs Commodity Index Total Return Index.
BGI Benelux business managing director Marko van Bergen said:
“Commodities has been been an under-used asset class for institutional investors, partly due to poor access and the lack of understanding in the benefits it can bring to an investor’s portfolio.
“A pooled fund set-up allows simple access for all types and sizes of institutional investors. The fund brings the advantages of commodities, such as diversification and return, to a wider range of investors.”
PP has compiled a list of what to watch out for over the coming months.
Canada Life has signed a £351m bulk annuity contract insuring the pensioner liabilities of 2,510 members and dependents in the AA UK Pension Scheme.
In this week's Pensions Buzz, we want to know if you believe there is ever a case for combining retirement savings products with other savings products, and if the PPF levy for sponsorless schemes is appropriate for DB consolidators.