Dutch pension fund giant ABP is to increase its investments in private equity and hedge funds.
The EUR150bn Heerlen-based fund already has 1.5% of its assets invested in private equity, but this is the first time it is venturing into hedge funds.
A spokesman for the fund said that ABP aims to boost its private equity brief to about 4% - pending market conditions - divided between US and Euroland. The portfolio will managed by NIB Capital Private Equity - a subsidiary of ABP and PGGM.
At present the fund is in the process of longlisting candidates for the initial 2% allocated to hedge funds. According to the spokesman, ABP will look at investing this initially in hedge fund of funds, and co-investments, with a minor percentage in direct investments.
The fund hopes to eventually move the fund of funds operation in-house and increase its exposure to individual funds.
By Madhu Kalia
The top stories this week were the High Court's decision to block the £12bn annuity transfer from Prudential to Rothesay Life, and a separate court ruling that 'raises the bar' for pension rectification exercises.
Guaranteed minimum pension (GMP) equalisation has soared to the top of pension schemes' to-do lists, with 58% stating it is a priority project, research from Equiniti has revealed.
Professional Pensions is holding its defined contribution (DC) conference on 4 September.