Stockholm (HedgeNordic) – PFA, the largest commercial pension fund in Denmark with DKK 450 billion (US$ 63.7 billion) in AUM, is forecasting a tripling of its investments in alternative assets over the next three to four years. This would bring its alternative assets investments up to DKK 65 billion.
Chief Investment Officer Henrik Nohr Poulsen told Reuters that the pension fund envisages earning a higher and more stable return compared to the continuously low interest rate levels on bonds, specifically with the planned expansion into alternative assets including infrastructure projects, renewable energy projects, ports, and forests. This follows disappointments with its investments in wind farm projects due to a drop in the market price of electricity.
PFA has hired five additional specialists to manage its alternative investments, bringing the total to seven specialists. It expects its total investments to increase to DKK 600 billion by 2020.
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