Institutional Investors

Newham shuns hedge funds for diversified alts


The $743 million Newham Borough Council pension fund in the UK has issued an RFP for a diversified alternatives manager for around £50 million, having ditched earlier plans to invest the money in hedge funds.

The London-based scheme had received a proposal from its consultant, Hewitt, to invest roughly 10% of assets in hedge funds, but after some research decided not to follow this route.

It will now seek a flexible alternative investment that would allow the fund manager to change the asset allocation in response to changes in market conditions.

The mandate has a target return of UK three-month