NETHERLANDS - The e10bn Dutch railway pension fund, Spoorwegpensioenfonds, is considering investments in alternatives.
The fund is looking at allocating 2-2.5% in hedge funds and 2.5% in commodities in 2005. Both asset classes will be managed by specialist managers.
Ton Groeneveld (pictured), investment director said: “We completed an asset-liability study three months ago and we are considering these new asset classes as part of our risk management.
“We will have to fund the new asset classes from the old ones. Equity may be reduced, but we have not yet decided anything.”
Current asset allocation stands at equities, including private equity, at 50%, bonds, credit, mortgage at 35% and real estate, direct and indirect at 15%
The fund may also allocate around 1% to index-linked bonds. But, Groeneveld said this will be managed internally by the fund and will not be put out to tender.
Spoorwegpensioenfonds is also scouting for e200m private equity managers and plans to use single manager funds in Europe as well as fund of funds managers in the US.
The fund plans to increase its allocation to private equity to 5% from the current level of 3%. It has invested e360m in 16 different single manager funds.
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