NETHERLANDS - The e8bn KLM Pensioenfonds, the Dutch pension fund for pilots, crew members and ground staff of KLM Royal Dutch Airlines, is mulling investments in alternatives.
The fund is considering a 2-5% allocation apiece to hedge funds, private equity and commodities and may appoint managers once the move is approved by the board.
Justus van Halewijn, head of investment strategy, Blue Sky Group, which manages assets for the pension fund, said: “We will be approaching the board in May, with a proposal to invest in hedge funds.
“We are now considering private equity and commodities and if we decide to invest in these asset classes, it will be in the same range of 2-5%. Any allocation, however, will only take place after we have decided on hedge fund investments.”
Van Halewijn said that investments in enhanced indexed equity for Europe and Japan are also being considered.
Last year, Blue Sky Group appointed State Street Global Advisors to an enhanced indexed US equities mandate. Janus had been appointed to run a $250m (e198m) US large cap enhanced mandate and Pimco had been hired to run a e218m global real return mandate.
Canada Life has signed a £351m bulk annuity contract insuring the pensioner liabilities of 2,510 members and dependents in the AA UK Pension Scheme.
In this week's Pensions Buzz, we want to know if you believe there is ever a case for combining retirement savings products with other savings products, and if the PPF levy for sponsorless schemes is appropriate for DB consolidators.
The Insolvency Service has disqualified four directors of trustee firms from running companies for a total of 34 years following an investigation.