NETHERLANDS - Progress, the €4bn Dutch pension fund of food and home care products manufacturer Unilever, is looking to double its commodity investments by the end of 2008.

A spokesman confirmed to IPE the fund made its first foray into the class this year, worth 2% of assets, adding that Progress will allocate another 2% in the second half of this year.

He declined to specify which commodities the fund targets, though Progress uses the S&P GSCI Index.

The investments are part of the fund's new risk-reduction strategy started in 2007, which has seen the fund divest from equities and increase the focus of its fixed income on emerging markets, euro credits and very long-term bonds.

The spokesman told IPE today: "Progress wanted to have a larger exposure to fixed income at the cost of equities as part of the strategic asset allocation, and this has been completed earlier this year."

He added that the fund has appointed a number of fixed income managers, which he would not name, which have already been funded.

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