Falkirk County (Scotland) Council Pension Fund hired Baillie Gifford and Credit Suisse to manage a £100 million ($157 million) absolute-return strategy and a £50 million global infrastructure fund of funds, respectively, Treasury Manager Alastair Redpath said.
The pension fund, which has a total of about £1 billion in assets, made the shift to better diversify investments away from traditional equities and bonds, Mr. Redpath said.
Funding will come from reducing by 5 percentage points a global bond portfolio run by Baillie Gifford; that portfolio will now have 10% of fund assets.
The remainder of the funding will come from reducing equities, although fund officials have not decided exactly which equity portfolios will be reduced and by how much, Mr. Redpath said. In total, equities will likely be reduced to 60% of total assets from 70%.
Hymans Robertson advised.