Institutional Investors

UK's Aberdeen in talks with Mercer over first hedge fund allocation


Aberdeen City Council Pension Fund, based in Scotland, is considering a first step into hedge funds with a potential mandate size of up to $164 million.

The $1.8 billion fund is understood to be in talks with its consultant Mercer about the process for implementing an investment totalling around 7% of the fund.

At present, the fund's asset allocation is UK equities 28%, overseas equities 37%, UK bonds 3%, overseas bonds 8%, private equity 6% and property 7%.

The fund may also consider a currency hedge product managed by State Street Global Advisors, one of its