NETHERLANDS - Pensioenfonds Horeca & Catering has rejected investing in hedge funds citing liquidity in the market and poor performance across the sector.
The e1.8bn Dutch fund has, however, decided to allocate to commodities for the first time. Petra Blonk, senior asset manager at the fund, declined to comment on the size of allocation the fund would be making, nor the means by which it would achieve an exposure to commodities.
Watson Wyatt is acting as the fund’s consultant.
As to why hedge funds are off the table for consideration, Blonk cited concerns over capacity, poor transparency and performance expectations.
She added: “We made the decision to invest in commodities and the fund is currently looking for the right manager to do this.”
Hedge fund returns as measured by the S&P Hedge Fund Index (S&P HFI) gained 0.90% during the month of June, finishing the first half of the year up 0.13%.
Last month, Horeca and Catering terminated an e400m global equity mandate managed by F&C Netherlands and hired T. Rowe Price and Acadian Asset Management to run the brief. T. Rowe Price manage a US equity portfolio with an enhanced index style worth e160m, while the Boston-based Acadian manage a e240m global equity mandate with a multi-factor approach that draws upon value, earnings, price and quality measures.
At the time, Blonk said the fund could be tempted to invest in the aggressive hedge fund market. Strategic asset allocation of the fund stands at 50% equities, 40% fixed income and 10% real estate.
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