NETHERLANDS - Bpf AVH, the Dutch industry wide pension fund for the agricultural wholesale trade industry, is making a foray into alternatives in 2005.
The fund said it would diversify its e300m portfolio by allocating a small amount to alternatives.
In addition, Erik Martens, managing director of Bpf AVH, said the fund would outsource “a large part of the assets of Bpf AVH” to two new managers who would manage the assets passively.
Martens said the fund recognised the trend to passive management and was changing its asset management structure accordingly.
The assets of Bpf AVH have been managed actively since 1998 by a growth manager.
In 2004, the fund posted an absolute return of 6.9% and the funding ratio improved, reaching 106%.
Martens said this year the fund would pay “special attention” to the duration of its assets, due to the new FTK regulations being introduced in 2006, which require pension funds to value liabilities on fair market value.
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