City of Westminster Council’s pension fund committee was set this week to vote to reduce its equity allocation by 10% to 55%.
The committee is considering a proposal to move 5% invested to fixed income and 5% to an illiquid alternative asset class.
A report by council officers said: “This would result in a decrease of 0.2% in expected return, however volatility would decrease by 0.6% and value at risk would reduce by £30m.”
The report said that an illiquid alternative could provide an opportunity for the fund to invest in renewable infrastructure.
