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IPE special report May 2018

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Volkswagen revamps UK fund

UK - The £160m (€222m) UK pension fund of German car maker Volkswagen has today confirmed it is moving towards a liability driven investment (LDI) strategy.

Roy Platten, Volkswagen group staff benefits and policy manager, told IPE the fund allocated 55% of its asset to LDI funds on October 1.

Aided by consultancy firm LCP, the Volkswagen scheme found an LDI approach is the best way "to take risk and volatility of the employer's contribution off the table".

Moreover, as part of this change in course, the fund has for the first time allocated assets into alternative investments.

Platten confirmed the fund has allocated 20% of assets to the class, with 10% invested in fund of hedge funds, 5% in infrastructure, and the other 5% in currency.

No further changes are expected in the near future, said Platten.

If you have any comments you would like to add to this or any other story, contact Carolyn Bandel on +44 (0)20 7261 4622 or email carolyn.bandel@ipe.com

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