Corporate pension plans in the UK are standing at a crossroads. Only the very largest – such as Universities Superannuation Scheme or Railpen – have the resources to build their own in-house team, but as the others weigh up hedge fund investing they are faced with a growing number of options.
While a fund of funds remains the obvious introductory point for a medium-sized or smaller pension fund, the newer model of the investment consultant acting in a fiduciary or delegated chief investment manager role has seen some success, with pension funds such as the Jaguar Pension Plan and the Land Rover Pension Scheme.
UK corporate plan sponsors have selected various managers and strategies to gain access, and home-grown firms such as Brevan Howard and Lansdowne Partners have gained traction in the space alongside long-time funds of funds such as K2 Advisors and Prisma Capital Partners (see table).
One of the most...