Not a household name, but Aerion Fund Management is the former investment arm of British Gas, that used to manage the pension contributions of the workers of British Gas, and then after many de-mergers and acquisitions at British Gas (British Gas, Lattice Group, Transco…..) the investment arm has become the fund management arm of the National Grid pension fund.
The total funds under management amounted to £17.3 billion.
6 asset classes are where the monies are invested:
7% in Alternatives
7% in Property
18% in Equities
3% in Private Equity
1 % in Cash
64% in Bonds
As one can see nearly 2/3rd of the fund are in fixed income (bonds). Which one can understand, when the fund has to pay out each month to the former workers (pensioners) of National Grid and British Gas, it needs investments that pay out a fixed income, thus bonds.