The Pensions Trust implements liability plan

The Pensions Trust, a UK multi-employer pension fund with £5.7 billion (€7 billion) of assets under management, has appointed BlackRock to build a £100 million portfolio of alternative investments and credit securities to help meet long-dated inflation-linked liabilities.

The Pensions Trust is looking to boost returns from alternative growth assets as bond yields fail to provide the protection investors need.

In 2011, the trust announced it would invest in new areas of potentially secure income like green bonds, infrastructure debt, real estate and renewable power. 

David Adkins, chief investment officer for The Pensions Trust, says: “We have a duty to our members to diversify risks in the portfolio and to generate income with our assets that match the liabilities owed to members.”

He described alternative growth assets as “crucial” to this approach. 

BlackRock will act as fiduciary manager, providing delegated investment services and reporting and managing both BlackRock assets and external investments for the trust.

The trust intends to grow its allocation to this area significantly beyond £100 million.

Andy Tunningley, head of strategic institutional clients at BlackRock, says building an illiquid, multi-alternatives strategy to provide long-dated, inflation-linked cashflows will help meet the trust’s objectives.

The Pensions Trust is a leading occupational pension fund for the charitable, social, education, voluntary and not-for-profit sectors. It has 2,400 employer organisations as members, covering over 170,000 employees and pensioners.

©2014 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

The tension between urgency and inaction will continue to influence sustainability discussions in 2024, as reflected in the trends report from S&P Global.
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

CLOUD DATA PLATFORMS

Luxembourg is one of the world’s premiere centres for cross-border distribution of investment funds. Read our special regional coverage, coinciding with the annual ALFI European Asset Management Conference.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST