Finnish pension fund counters low rates
Finland’s €18.5 billion State Pension Fund (VER) will slightly increase its allocation to hedge funds, in order to counter the impact of low interest rates on its fixed-income holdings.
PKA, one of Denmark’s largest pension service providers, is exploring whether to increase its risk budget by 10 per cent to boost returns. Michael Flycht, deputy director of equities and liquid alternatives at PKA, outlines why the fund is achieving this objective via leverage rather than direct exposures, and where it's allocating towards in hedge funds and infrastructure.
Finland’s €18.5 billion State Pension Fund (VER) will slightly increase its allocation to hedge funds, in order to counter the impact of low interest rates on its fixed-income holdings.
HSBC Bank (UK) Pension Scheme is an innovative hybrid fund that incorporates a climate tilt for its global equities default in DC, while in the DB portion it remains focused on de-risking.
The giant Danish fund, ATP, now views the return-seeking part of its investment portfolio through four risk sectors, allowing an easy comparison of investments across asset classes.
A disillusionment with active has led Minnesota to double its passive allocation in public equities, a strategy that sits alongside a commitment to long-term investing in private markets.
The Employees Retirement System of Rhode Island is looking to cut management fees and slash hedge fund allocations over the next two years, on the heels of lagging returns.
In the six years since Norway’s finance ministry approved the $871 billion Government Pension Fund Global invest in foreign real estate, its real estate arm has built a substantial portfolio.
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