DENMARK - The DKR38bn (e5.1bn) Industriens Pensionsforsikring is seeking managers to target returns in the active currency space, with an appointment likely early next year.
Henrik Nøhr Poulsen, head of equities at the fund said: “We are currently searching for one or more external currency managers that have generated good stable returns. We are screening the market and we will probably make a placement in the first part of next year.
“Basically we want to get some return on investing in currency as an asset class.”
Poulsen said there was a growing tendency among Danish funds to look at currency as an investment object, rather than a simple by-product of investing abroad.
He explained the move into active currency was the result of the fund’s search for newer asset classes, and added that Industriens would “probably invest in between three and five new asset classes” – such as infrastructure and hedge funds.
“We will test these asset classes by investing a small amount, and if we’re comfortable with them, we could increase allocation further down the road,” he said.
Lars Rohde, CEO at the DKK398.6bn (e53.4bn) ATP, said the fund was also looking into tapping alpha from the
currency markets, but had made no decision as yet.
Michael Nelleman Pedersen, CIO at the DKR104.5bn (e14bn) PKA said his fund was not looking at active currency at present, but added: “We are discussing setting up a currency overlay, and we might do so over the next six months. It will be more a case of testing the waters than any significant allocation there.
“At the moment we have a passive approach to currency, and if we look at equities, we hedge with a rate of between 60-80% of our dollar yen and pound exposure, and with bonds it is 100%. So at the moment it’s a very passive approach.”
An analysis of IGC annual reports finds some lacking in information on value for money, costs and charges, and investment performance. James Phillips explores the findings
A new cost transparency solution is being developed for pension schemes by a financial services technology firm.
Supermarket giant Asda's plans to reform its pensions have been decried as "unfair, unreasonable and unnecessary" as the workers' union began talks with the employer.
The Pensions Administration Standards Association (PASA) has launched a checklist to help trustees with the rectification process for guaranteed minimum pensions (GMP).