London Pensions Fund Authority's assets increased 4.2% for the fiscal year ended March 31, to £4.9 billion ($7.8 billion).
In its 2014 annual report, published Friday, executives at the LPFA said the funding level had increased to 93% as of March 31, an increase of two percentage points compared with a year earlier.
The pension fund achieved a 6.1% investment return, with infrastructure its “star performer,” according to the report. Infrastructure, to which the pension fund has a 3.5% allocation, returned 20% over the year, “due to the successful sale of an investment held since 2004.” The pension fund's global equities portfolio, which has a 51.3% allocation, produced a return of 7.1%, ahead of its 6.4% benchmark.
The pension fund is in the process of altering allocations. Executives at the fund plan to increase the allocation to illiquid assets to 30% by 2016 from the current 16.5%. The increase will depend “on how investment opportunities arise,” said Edmund Truell, chairman at the LFPA, in the annual report.