DENMARK - Industriens Pension produced a 0.6% return over 2007, but lowered its member costs by 10%.
Real estate performed badly for the fund, with a -22.2% return across the year.
The release of the results came as it was announced Investec has been appointed by Industriens Pension to provide currency management of £14m (US$27.1m).
This amount would be leveraged to be worth £216m, according to the asset manager.
Jan Østergaard, CIO, Industriens Pensionforsikring, said: "We believe that active management of the fund pays off for our members.
"We announced in May 2007 that we intended to diversity our portfolio into non-core asset classes, and this mandate is a result of that decision."
Richard Garland, managing director, international distribution, Investec, added: "The low correlation of currency markets to other asset classes provides an opportunity for well-informed investors to both add a separate source of alpha to their portfolio and diversify part of their risk, and it is this fact which has helped cause a surge in interest in our currency products by institutional investors."
Industriens Pension has produced an average annualised return of 8.4% since its inception in 1993.
In January 2007, the fund awarded a DKK372m Japan Small Cap equities mandate to State Street Global Advisors (SSgA).
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