Industriens looking to add value with currency
DENMARK - The four billion-euro Danish industry pension fund, Industriens Pensionsforsikring, could decide to adopt currency management strategies next year to “add value”, its chief investment officer has told IPE.
Jan Oestergaard confirmed that the pension fund was considering opting for active management with the implementation of currency management.
“In a way it is true that we are thinking about it since it could add value, but we have to meet a lot of requirements, like communication with custodians and clients,” Oestergaard said.
He stressed the fund was in the early stages of consideration. The Copenhagen-based scheme fund has been considering currency management for the last couple of years, but it would not take ‘active steps’ before next year.
A currency management strategy could be chosen by the end of the first half of 2005, but Oestergaard said this estimate would be accurate only if things went smoothly.
For the time being, the plan is looking at the possible advantages of currency management. Once an assessment is made, the board of directors would be considering the matter further.
Industriens invests 20% of its total portfolio in global equities, 10% in domestic equities and 2.5% in private equity.
Twelve percent of the remaining allocation consists of bonds with a 12% allocation of which is equally split between high-yield and emerging markets.
No investments have been so far made in alternatives.