The £3.5bn (€5.2bn) London Pension Fund Authority is poised to make a maiden £70m allocation to commodities and is eyeing hedge funds and clean technology investments.

The fund, which is split in two, is also likely to review its private equity portfolio and update its socially responsible investment strategy. The commodity and hedge fund investments would take the allocation to alternatives in the LPFA's £2bn sub-fund closer to its 15% target. Its existing alternatives portfolio is not yet fully invested and includes allocations to property, private equity and infrastructure. Mike Taylor, chief executive, said: "We believe we should be investing in commodities because they provide good returns uncorrelated with bonds and equity markets but it is a question of getting the tactical timing right." A hedge fund allocation was also on the radar and the LPFA is keen to allocate to clean technology funds. Taylor plans to review the fund's private equity strategy and is concerned about the level of fees. "I am not saying it's wrong but it is on the list to review," he said. LPFA's private equity managers are HarbourVest Partners, LGT Group and Pantheon.