Netherlands - Stichting Pensioenfonds TNO (SPF TNO), the Dutch pension fund, had appointed two new managers for its hedge fund investment.
EIM and Paamco have each been allocated to a e15m hedge fund mandate. While, EIM has been appointed to provide strategic allocation to the various SPF TNO hedge fund strategies, PAAMCO has been appointed to provide actively managed exposure on the various strategies.
The fund invested some e30m in hedge funds in 2003 and plans to increase its allocation to the asset class over the next two years from e30m to e100m to be split equally between the two managers.
FundPartners advised SPF TNO on its process of awarding these mandates to EIM and PAAMCO.
Erik van Ballegooijen, Director at Stichting Pensioenfonds TNO, said: The interest for hedge funds stems from a further diversification of the equity portfolio, especially with investments with low correlation with the listed markets and an interest in absolute return strategies.
“The first reason contributes to a lower risk profile and the second reason is more fundamental, since the pension industry is in fact an absolute return business given their liabilities and can not be driven by beating benchmarks. “
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