Tag: PFZW

Dutch Pension Turns $56 Million Profit From Hedge Fund Exit

Netherlands

The Netherlands’ second-largest pension fund, PFZW, decided late in 2014 to completely exit its $2 billion hedge fund portfolio.

Two months later, after a rapid-fire wind down, the pension fund has exited all hedge funds – and it made a $56 million profit in the process.

From ai-cio.com:

Dutch healthcare sector pension PFZW netted a $56 million profit in two months as it exited hedge funds last year.

PGGM— which manages assets on behalf of PFZW—completed the majority of the liquidation in November and December. PFZW announced last week that it had closed its allocation to the asset class, citing complexity, costs, and sustainability issues.

Ruulke Bagijn, CIO for private markets at PGGM, said her company had raised $2.44 billion from the sale of the hedge fund holdings.

“The successful liquidation process of PFZW’s capital was driven by skilful use of the unique operational infrastructure PGGM has in place, as well as accommodating market circumstances,” she said.

[…]

PFZW’s hedge fund holdings performed in line with expectations and “contributed to diversification of the portfolio”, Bagijn said, but the pension had “a less strong belief in the positive contribution of hedge funds” in the future.

However, Bagijn emphasised that the decision was made by PFZW and would not affect PGGM’s other clients. This is despite Jan Soerensen, PGGM’s head of hedge funds, leaving the group last year.

PFZW manages $185 billion in assets for the country’s health care workers.

Dutch Pension Drops Hedge Funds

Netherlands

The Netherlands’ second-largest pension fund has announced plans to exit its hedge funds investments.

The fund, PFZW, has already began the process of winding down the investments.

The fund cited complexity, lack of performance and excessive costs as reasons for the pullout.

From Reuters:

The Netherlands’ PFZW has become the latest major pension fund to announce it will no longer use hedge funds to manage investments, citing excessive costs, complexity and a lack of performance.

[…]

About 2.7 percent of the fund’s assets had been invested with hedge funds in the year 2013, but the pension fund said on Friday that it had “all but eradicated” their use by the end of 2014.

“With hedge funds, you’re certain of the high costs, but uncertain about the return,” the company’s manger for investment policy Jan Willem van Oostveen said.

He added that PFZW wanted to have greater control over of its investments, and that hedge funds’ methods were too complex because of their diverse investment strategies.

In September, the $300 billion California Public Employees’ Retirement System said it had scrapped its hedge fund programme, pulling out about $4 billion.

PFZW manages $185 billion in assets for the country’s health care workers.