DENMARK - Industriens Pensionskassen, the e3bn Danish corporate pension fund, is planning to hire private equity managers.
Jan Oestegaard, head of investments said: “We plan to focus on private equity over the next couple of years and intend to increase our allocation to around 5% in the long term.” Currently, private equity stands at around 1.5%.
“The fund uses both focussed funds and fund of funds but to a larger degree, we use focussed funds. We have started to use fund of funds to ensure that we have enough risk diversification,” he added.
Oestegaard said that the fund may hire two-three private equity managers this year, with a primary focus on the Danish market and a secondary focus on European and US markets.
Industriens Pensionskassen has recently hired Invesco to run a $140m (e112m) enhanced indexed equities mandate and has also appointed Axa Rosenberg to manage a $50m (e40m) US small and mid-cap brief.
Current asset allocation stands at around 30% equities and 70% bonds.
The fund returned 12% for 2003, with the Danish and foreign equities portfolio returning 33.9%, while emerging market debt returned 24.9%.
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