SWEDEN - The SEK6.2bn (e670m) Pressens Pensonskassa , the Swedish pension fund for the media industry, is contempating allocating 25% of its portfolio to global corporate bonds and investment grade bonds.
The pension fund is also considering a 5% allocation to hedge funds.
Thomas Lindstrand, managing director, said: “We will decide on our investments in these two areas in May. If we decide to invest in hedge funds, we may adopt both the fund-of-funds and the direct investment strategy. We are also likely to appoint managers for hedge funds.”
The fund may also appoint managers to run the new corporate bonds and investment grade bonds portfolio.
“We are currenly only invested in Swedish government bonds and mortgage bonds. But we want a further diversified portfolio and we think corporate bonds and investment grade bonds will provide that,” added Lindstrand.
Currently, asset allocation of the fund stands at 35% equities, 35% real estate and 30% bonds.
Lindstrand said that the fund may reduce its existing 35% allocation to Swedish bonds and mortgage bonds and may also reduce its exposure to real estate to 27% to fund the new bond allocation.
The fund is advised by the Stockholm-based Wassum Consultants.
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