NETHERLANDS- Spoorwegpensioenfonds, the e11bn industry-wide pension fund for the rail sector, is considering a 5% allocation to commodities within the next six months.
Marcel Andringa, head of investment services, said the decision to take a first step into the asset class had been made, “because of the diversification aspects of commodities. You get a better risk return profile,” he said.
The 5% allocation is an ambition to be reached over a five-year horizon. The size of the initial allocation is as yet undetermined, and it is not yet certain whether the allocation will be invested against a passive index.
The pension fund, which has approximately 60,000 members, is currently invested 50% in equities, including private equity, 30% fixed income and 15% real estate.
The remaining 5%, to be invested in commodities over five years, is presently invested in those other asset classes.
Adringa added that further allocation to alternatives was likely.“We’ve got real estate already and started with private equity a couple of years ago, so I think it will go up,” he said.
The pension fund has about 60,000 members.
Story by Lisa Haines
An unnamed London-based employer has been hit with a £350,000 fine from The Pensions Regulator (TPR) for failing to fully comply with its pension duties.
XPS Pensions has enhanced its fiduciary management selection service in order to help trustees through initial selection and mandatory re-tendering.
One in five defined benefit (DB) schemes are in The Pension Regulator's (TPR) weakest two categories, analysis by Hymans Robertson has revealed.
State Street Global Advisors (SSGA) has been selected as the first index manager for the Asset Management Exchange's (AMX) passive funds.