The Royal Borough of Kensington & Chelsea plans to invest around $205 million in absolute return funds.
The investments represent a significant portion of the fund's total $521 million in assets.
The pension scheme will appoint two investment managers for an absolute return strategy that invests predominantly in long only. While hedge funds or FoHFs will not be considered, the scheme states, it may consider limited exposure to these assets via underlying pooled vehicles. The benchmark and target will be LIBOR plus 3%.
The plan has been considering absolute returns but is cautious about making a full-blooded investment into