NETHERLANDS - The e1.8bn Pensioenfonds Horeca & Catering has terminated a e400m global equity mandate managed by F&C Netherlands and has hired T. Rowe Price and Acadian Asset Management to run the brief.
T. Rowe Price will manage a US equity portfolio with an enhanced index style worth e160m, while the Boston-based Acadian will manage a e240m international equity mandate, excluding the US, with a multi-factor approach that draws upon value, earnings, price and quality measures.
Petra Blonk, senior asset manager at the fund, said: “We made the switch partly for better performance and partly because we changed our investment style. We now have a low tracking error for the US markets.”
“By selecting these two equity managers, the board aims to further diversify the investment styles in its investment portfolio and to significantly improve return on equities. This agreement is part of a continuous drive to improve the efficiency and effectiveness of the pension fund’s asset management,” added a statement released by the fund. Blonk also said that the fund was considering investing in hedge funds and commodities: “We are just in the research phase. If we do decide to make an allocation, it is likely to commence from next year onwards.” Strategic asset allocation of the fund stands at 50% equities, 40% fixed income and 10% real estate.
The fund is advised by consultants Watson Wyatt.
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