Friday, 29 August 2014
Last updated 14 hours ago
Nov 5 2012 | 10:10am ET
The Dutch pension system, seeking to cut costs and boost returns, is preparing to trim its investments in hedge funds.
Inge van den Doel, head of investments for PMT, the country's third-largest pension fund, told Citywire Global the cuts had become necessary for a number of reasons, including the system's strict coverage ratios—when these fall below 105%, the fund must review its risk policy.
Van den Doel said her fund's coverage ratio is now between 85-90%: “Because our coverage ratio is below the regulatory minimum we cannot afford to take on more risk so our whole investment policy is risk-driven,” she said.
But van den Doel, whose organization manages the pensions of Dutch metal workers and engineers, also cites high fees as a factor in her decision:
“Hedge funds getting 2 and 20 is not acceptable for us anymore. For example, if one of our metal workers has a €500 pension a month they will not accept that they are investing in hedge fund managers who receive that kind of performance fee.
“We just cannot do that anymore.”
PMT has assets of €41 billion, 15% of which is allocated to alternative strategies. Of the pension fund's alt investments, about €3 billion is in private equity, a sector to which van den Doel said the fund is much more attached than to hedge funds which are “just an investment.”
PMT (Pensioenfonds Metaal en Techniek) is the pension fund for all employees of the country’s metal and engineering industry.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...