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Physios to double hedge fund exposure

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NETHERLANDS - The €1.8bn occupational pension funds for physiotherapists, SPF, is looking to nearly double its investments in hedge fund investments to 15%, IPE has learnt.

Peter van de Ven, a member of the investment committee at Stichting Pensioenfonds voor Fysiotherapeuten (SPF), told IPE the fund currently invests around 8% in the asset class, but has been discussing an increased exposure.

He added that a further move into hedge funds, possible via a fund of funds structure, is seen by the fund as a good way of further diversifying the investment portfolio.

According to the fund's last actuarial valuation, SPF has 10% of its assets invested in alternative investments, while the tactical asset allocation for fixed income is 50%, 20% for equity, and 20% for real estate.

Late last year, the fund announced it will grant its participants an indexation of 9.08% this year, made possible by the scheme's cover ratio of almost 235%.

The fund aims to grant a yearly increase of pension promises of at least 3.75%. It paid its participants an indexation of 4.55% in 2007.

The news comes as the Swiss alternative manager Partners Group predicts further increases in trading opportunities in hedge funds investments for the first half of this year.

"As a result of the market turmoil, we are already observing a reallocation trend of assets between strategies in Q3 which we expect to continue," said the company in its alternative assets navigator for the first half of 2008.

Partners added: "Assets in the hedge fund universe should move from directional equity strategies towards arbitrage strategies and strategies with more dynamic exposure management."

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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