Buckinghamshire county council pension fund is shifting a proportion of its investments out of equities and into property and bonds.
The £561m scheme will tender two new specialist mandates, one to invest £25m in property, and the other £85m in UK and overseas government and corporate bonds.
Although the amount being allocated to property is small, it is an indication of how pension funds are re-evaluating the asset class.
The sharp fall in the equities market and regulatory requirements to match assets with liabilities are driving funds to reduce their exposure to equities and increase their holdings of bonds.
Property, which has characteristics of both, is gaining favour, especially as it helps diversify portfolios.
Buckinghamshire’s move to reallocate assets follows an asset liability study and changing the bond/equity split.
The fund is split between four managers, three running balanced mandates and one specialist global equity manager.
No decision has yet been made as to which mandate the money will come from.
