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DKK115bn PKA eyes hedge funds and bank loans

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DENMARK - Pensionskassernes Administration (PKA), Denmark's largest occupational pension fund administrator, is looking to make its first allocation to hedge funds.

Michael Nellemann Pedersen (pictured), chief investment officer, said PKA also wants to make its first investment in bank loans, while aiming to award a commodities mandate after the summer.

He added that an investment in hedge funds would most likely be financed by decreasing PKA's current bond allocation.

Around three years ago, the fund decided against investing in hedge funds in favour of an increase allocation to private equity, forestry investments and infrastructure.

"Two or three years ago we had some intense discussions about hedge funds, but decided to focus on other areas, but today we are prepared again to look again at hedge funds," said Nellemann Pedersen.

He declined to outline which kind of commodities the fund would favour as an investment, since PKA is currently evaluating what action to take.

"We are not going to make an investment in a commodities index; we will make some investigations into different strategies in the commodities ares," he concluded.

PKA manages total assets worth DKK115bn (€15.4bn) from eight pension funds.

If you have any comments you would like to add to this or any other story, contact Carolyn Bandel on +44 (0)20 7261 4622 or email carolyn.bandel@ipe.com

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