Cornwall plans private debt allocation

Cornwall’s pension fund is also establishing a strategic allocation to multi-asset credit as part of a revamped investment strategy.

The Cornwall Pension Fund is planning on making a strategic allocation to private debt, according to documents from a recent pension board meeting noting items discussed in December.

The fund’s documents note it will aim to allocate roughly six percent of its assets to the asset class. The range of private debt allocation within the fund, however, may vary from three to nine percent.

Private debt is expected to generate returns of 4.8 percent above gilts, the fund’s documents note.

Though the addition of private debt to the investment strategy is new for the pension fund, it does have a small allocation to the asset class, per its documents. The fund has approximately 0.15 percent of its assets managed in a private debt strategy by M&G Investments.

The pension fund also has infrastructure investments managed by Hermes Investment Management and Infracapital.

In addition to the proposed strategic allocation to private debt, the Cornwall Pension Fund is considering an allocation to a multi-asset credit strategy. The fund is targeting an allocation of five percent to the strategy, with a range between zero and 15 percent.

The East Riding of Yorkshire County Council Pension Fund also recently noted it was upping its allocation to a multi-asset credit strategy. The move was part of a desire to up the overall allocation to alternative strategies within the pension fund.

A spokeswoman for Cornwall Council did not respond to calls requesting additional comment by time of publication.