Institutional Investors

Shell assigns 5% to alternatives to provide diversification


The $16 billion Shell Contributory Pension Fund in the UK has had the go-ahead to make a 5% allocation to hedge funds thanks to a recent investment strategy review.

The new strategic asset allocation mix allows for up to 5% in alternative investments such as hedge funds. The aim of the new category is to provide diversification benefits for the pension fund in volatile markets.

The new asset allocation mix is 40% fixed income, 40% equities, 5% private equity, 10% property and 5% alternative investments. This compares with the 2007 mix of 40% fixed income, 45% equities, 5% private equity