PGGM pension plan, Zeist, Netherlands, is conducting an invitation-only search for managers of emerging market debt, high-yield debt and inflation-linked debt for portfolios that will account for a combined 1% of the plans fixed-income allocation, said Roderick Munsters, head of investments. The 52 billion euro (US$45.8 billion) plan will select managers later this year.
Separately, the plan reported an investment return of -6% for 2001, said Mr. Munsters. Its return over five years was 10.9%. The worst-performing asset class last year was commodities, returning -32.8%.
Mr. Munsters said the plan is not adjusting its asset allocation as a result of last years poor performance, but contributions will be increased this year. "Last year was bound to happen, it was in our investment models. We are also happy to enjoy the fat years, he said at the National Association of Pension Funds annual investment conference in Edinburgh. The plans current asset mix is 45% equities, 6% private equity, 16% real estate, 29% fixed income and 4% commodities.