Stichting Pensioenfonds UWV, Groningen, Netherlands, will increase its allocation to alternatives to 17% of total assets from the current 9%, according to a news release on the €4.6 billion ($6.2 billion) pension fund's website.
The move was made to better diversify the overall investment portfolio and to seek partial inflation protection. To be managed externally, the new allocation to alternatives is expected to increase fund management costs by about 30% to €20 million from €14 million, according to the news release.
The reallocation to alternatives will be implemented over the next three years and will likely be at the expense of bonds.
Efforts to reach pension fund officials for more information were unsuccessful.