NETHERLANDS – The giant €12.5bn Dutch metal workers fund, PMI, is undertaking an asset liability study that could open up its investment strategy to include alternatives such as commodities, currency overlay, below investment grade bonds and inflation-linked contracts.

The study is due for completion this Autumn, but the fund’s managing director, Roland van den Brink would not comment on the consequences of an overhaul of the asset allocation strategy.

The ALM is being carried out since PMI believes that managing absolute risk by diversifying its asset allocation is becoming more and more important than straight-forward allocation to traditional asset classes, particularly equities “The days of more equity means more return are over,” says van den Brink.