The Pensions Trust has hired BlackRock to build a £100m portfolio of alternative investments and credit securities to help its long-dated inflation-linked liabilities.

The multi-employer pension fund for the third sector said in 2011 that its new investment strategy will see it investing in new areas of potential secure income, such as green bonds, infrastructure debt, real estate and renewable power.

David Atkins, The Pensions Trust chief investment officer, said: "We have a duty to our members to diversify risks in the portfolio and to generate income with our assets that match the liabilities owed to members.

"Alternative growth assets are crucial to this approach and BlackRock is a key partner for us meeting our socially responsible investment standards and providing access to a huge array of alternative investment opportunities."

BlackRock will be the fiduciary manager for the trust, providing delegated investment services, reporting and managing BlackRock assets and external investments.

Andy Tunningley, BlackRock head of strategic institutional clients, said: "Alternative investments are becoming more mainstream as return expectations for traditional asset classes are low.

"Continued low yields on fixed income assets are hurting pension scheme funding levels and exposing them to previously unseen risks, and we feel The Pensions Trust is taking a very innovative approach to this challenge."

First published 13.02.2014

monique_simpson@wilmington.co.uk