The London Borough of Newham Pension Fund is seeking to appoint its first currency manager by February and is also considering an investment in infrastructure. The GBP540 scheme has tendered a GBP27 million actively managed pooled currency mandate. This will be funded by reducing the scheme’s equity exposure, spokeswoman Michelle Hyland explained.
The move follows a recent investment strategy review conducted by investment consultant Hewitt Associates and it expects to hedge currency risk on its global portfolio, said Roy Nolan, strategic financial adviser at the fund. The deadline to participate on the currency tender is Nov. 15.
Separately, the scheme is also considering an investment in infrastructure. The value of the fund fell by 2% in Q3 and has underperformed against its benchmark. Hewitt “advised us that infrastructure would help close [the] funding gap,” explained Nolan. The scheme is approximately 30% unfunded. Members of its investment committee are to receive training on the asset class, and the local authority will make a decision on infrastructure within the next months.