Cornwall County Council Pension Fund, Truro, England, hired Man FRM to run a £120 million ($182 million) hedge fund allocation, said Jignesh Sheth, director at JLT Employee Benefits, which advised the pension fund on the appointment.
The £1.5 billion pension fund has a target allocation to hedge funds of 8%, and an actual allocation of 1%, Mr. Sheth said in an e-mail. The target will be funded by implementing strategic allocation changes adopted during a recent review by the pension fund, “primarily from global equities,” Mr. Sheth said.
He added that no assets have yet been transferred to Man FRM, but the full allocation is expected to be reached this year.
“We very much look forward to working closely with Man FRM and JLT to build a diversified hedge fund portfolio that will provide the best solution for the Cornwall Pension Fund as part of the overall investment strategy,” said Matthew Trebilcock, pension investment manager at the pension fund, in a news release from JLT.
The allocation will be managed through Man FRM’s managed accounts strategy, which Mr. Trebilcock said allows for greater transparency of the underlying holdings compared with other options.
An RFP was issued in June.