NETHERLANDS - PGGM, the Dutch EUR49bn pension fund for healthcare and social workers, is in the process of selecting hedge fund managers and expects to make appointments later this year.
According to a spokesperson for the Zeist-based fund, PGGM is looking to hire at least two hedge fund managers to run a small portion of the fund’s assets. PGGM will appoint the managers during the third quarter, with funding coming from across the board reductions in its current asset allocation.
Additionally, the spokesperson revealed that the fund has hired an emerging markets bonds manager, but declined to either the reveal the identify of the winning firm or the size of its mandate.
The spokesperson added that as the fund intends to retain its current 30% allocation to fixed income, the new manager will be funded via a reduction in the amount currently invested in other fixed income classes.
Although the spokesperson declined to reveal any further details, they did reveal that the investment is its first foray into the asset class. PGGM is investing in emerging markets, corporate and index-linked fixed income as part of a diversification exercise.
PGGM’s forays into new asset classes follows its disappointing showing during 2001, when it posted a -6% return. The fund attributed the poor result to its private equity portfolio – which lost 24.8% – as well as the losses incurred by equities and commodities. Equities posted a -12.7% return for PGGM during 2001, whilst commodities finished the year with a -32.8% return.
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