The Environment Agency Active Pension Fund is set to drastically reduce its gilt holdings in favour of corporate bonds after reviewing its investment strategy.
The scheme will more than double its exposure to corporate bonds, which will make up 28% of its portfolio while slashing its gilt holdings from 13.5% to 5%.
The fund will also continue to shrink its allocation to equities and will introduce alternative ‘real asset' investments such as sustainable timberland, agriculture and infrastructure.
Head of environmental finance and pension fund management at the agency Howard Pearce said that the scheme still had the flexibility to switch back into gilts if yields improved.
"But in the short term we just don't see gilts providing the same returns as corporate bonds," he said.
Over the last two years, we have been engaging with companies about the presence of child labour in the cobalt supply chain.
The £45bn Border to Coast Pensions Partnership has launched its largest fund to date, with £5bn of Local Government Pension Scheme (LGPS) assets being allocated to global equity alpha.
The BT Pension Scheme (BSPS) has awarded a $1bn (£777bn) private equity mandate to Hermes GPE, to invest globally.
Warrington Borough Council and Altana Wealth have set up a Public Sector Social Impact Fund to offer pension funds secure social investment opportunities.
In 2018 we wrote a letter, supported by 60 asset managers and owners, urging the oil industry to take more action on climate change. What was the outcome?