UK - UK fund manager Hermes is in the process of considering a serious re-allocation of the £34bn BT Pension Scheme in order to reduce its deficit risk.
Both Hermes and BT confirmed they were looking into the possibility of increasing exposure to the alternatives market with hedge funds and commodities being closely looked at. However responding to media reports on changes, both insisted no decisions had been made at this stage.
A spokeswomen at Hermes said: “Hedge funds and commodities are just a few things we are looking at. It’s something that most pension funds are looking at. Nothing has been decided yet.”
A spokesperson at BT confirmed the scheme had begun readdressing their investment strategy.
The most recent deficit valuation for the fund stands at £2.5bn but the spokesperson claimed the company was still undergoing a new assessment of the deficit.
It has been reported that BT delayed publishing a new valuation last week after a dispute over claims that large parts of the pension liabilities would be backed by the government.
By Daniel Flatt
The People's Pension, Atlas Master Trust and The Cheviot Trust have been granted authorisation from The Pensions Regulator (TPR), taking the total number of authorised master trusts to 18.
Pension schemes have been warned they may now face a more challenging legal test if they wish to fix drafting errors.
The Greene King Pension Scheme has appointed XPS Pensions as its actuarial and investment adviser following a competitive tender process.
Professional Pensions has compiled a list charting the progress of master trust authorisation. View our list in full here...