RIJSWIJK, The Netherlands (HedgeWorld.com)–Stichting Pensioenfonds TNO invested 30 million euros (US$36.5 million) in two multi-manager, multi-strategy fund of funds managed by the London office of Pacific Alternative Asset Management Company LLC, Irvine, Calif., and EIM Group (UK) Ltd., London.
According to separate statements from PAAMCO Europe and EIM Group, the 1.3 billion euro (US$ 1.6 billion) Stichting Pensioenfonds TNO plans to increase its allocation to the two funds of funds managers to as much as 50 million euros (US$60.5 million) each in the next 12 months.
Pension fund officials reviewed proposals from 16 funds of funds in Europe and the United States before selecting PAAMCO and EIM, said Eric van Ballegooijen, director of Stichting Pensioenfonds TNO, in a statement.
The fund, Mr. van Ballegooijen said, was looking for further diversification of its equity portfolio and wanted investments that had low correlation with listed markets.
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“The first reason contributes to a lower risk profile and the second reason is more fundamental, since the pension industry is in fact an absolute return business given its liabilities,” Mr. van Ballegooijen said. “It cannot be driven by beating benchmarks.”