Anglian Water Pension Scheme is understood to be considering an investment in funds of hedge funds.
The move might involve redeeming some or all of its current single manager hedge fund exposure.
With total assets of around $1.2 billion, the scheme may consider an investment of around 5% of assets, or roughly $61 million, into a fund of hedge funds.
Currently, its asset allocation stands at UK equities 13%, global equities 17%, index-linked bonds 23%, fixed interest 30%, property 2.5%, currency 4%, hedge funds 5% and cash 4%.
The plan is based