London's Lambeth Borough Council is planning a shift into hedge funds as part of a programme of diversification. The scheme has total assets of around $930 million.
The plan's new target will see up to 20% of total assets invested in absolute return, which is likely to include hedge funds - probably via fund of funds as an initial step.
The shift in asset allocation comes in the wake of an investment strategy review carried out by Xafinity consulting. The new asset allocation model will see 70% of the fund invested in return seeking assets with 33% in equities, 12%