NETHERLANDS - The e3.2bn KPN Pension Fund sealed its foray into commodities through a 3% allocation to the asset class.
With this allocation, the fund’s exposure to alternatives has increased to 16%. The fund has invested around 3% in hedge funds and 10% in real estate.
TKP Investments, which acts as the investment manager for the fund, said that the fund had made its investments in commodities through a mutual fund managed by TKP.
J Baan, CIO of TPK Investments said: “The 3% allocation in commodities is the first step. We have made no concrete decision on increasing this, but it is something that we are constantly reviewing.”
Baan said that the fund had also increased its exposure to emerging market equities.
Asset allocation of the fund stands at 50% fixed income, 16% alternatives and 34% equities.
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The lifetime allowance should be scrapped and replaced with a lower annual allowance, last week's Pensions Buzz respondents said.
Action for Children Pension Fund has outsourced its pensions administration to Trafalgar House.