- Nordic investors reveal a taste for the...
- Nordic funds take flight to infrastructu...
- Norwegian investors have high hopes for...
- What is liability driven investment?
- Illmarinen CIO takes ‘rare’ opportunity...
- Russia’s consumer explosion
- The Latin America hedge fund opportunity
- Commodities continue to attract business...
- Shedding bonds for an energetic future
- Norway’s global fund spreads its wings
PKA, the €15.5bn administration company for occupational pension funds in Denmark, is increasing its exposure to private equity from 2 per cent to 5 per cent over the next two years.
|
Michael Nellemann Pedersen |
Michael Nellemann Pedersen, CIO at PKA, said the fund’s private equity investments yielded healthy returns in 2006.
“The earlier increase of our private equity portfolio has proved to have been correct,” he said.
“It takes time to see the results, but if we inspect the asset class separately from the rest of the portfolio we can see that it yielded a return of 32.9 per cent. This gives us the appetite for more. Over the next few years we are going to increase our allocation to this asset class significantly,” Mr Nellemann Pedersen added.
Claus Jørgensen, head of equities at PKA, added that the fund’s private equity portfolio would be expanded via foreign funds and funds of funds. “PKA already has large investments in Danish private equity and therefore the largest part of its future investments in private equity will be made overseas via fund of funds constructions in order to spread the risk,” he said.
At the end of 2006, PKA’s portfolio consisted of bonds (51 per cent), foreign equities (23 per cent), Danish equities (10 per cent), property (14 per cent) and private equity (2 per cent). Last year the fund pulled in a total return of 6.3 per cent.
RC
