The $4.14 billion Lothian Pension Fund will consider a maiden move into hedge funds as part of a major expansion of its alternatives portfolio. A committee meeting at the end of March considered a revised investment strategy presentation by Hymans Robertson, the Edinburgh-based plan's consultant.
The report recommends a reduced allocation to equities to 60% from 66%, as well as an increased allocation to alternative investments of 35% from the current 24%.
At present, the fund's alternatives portfolio is restricted to UK and global property, private equity, infrastructure and active currency. However, the review stresses the genuine diversification benefits