Cordares Capital Care's asset management arm will consider putting more money into hedge funds and making its first investment in commodities later this year, according to Jan van Bakel, CIO. The plan sponsors comprising the €21.5 billion ($26.04 billion) multiemployer pension plan, Amsterdam, are conducting an asset-liability study, which should be completed in September.
The largest member of Cordares, previously known as SFB Groep, is the €16 billion Stichting Pensioenfonds voor de Bouwnijverheid, Amsterdam, the pension plan for workers in the Dutch building industry. Cordares is looking for new clients and is in merger talks with a number of Dutch industrywide plans, said Joep Schouten, chairman of the executive board.
Cordares is branching out to get better economies of scale and broaden its client base, he said. It intends to increase profits and turnover by 30% over the next five years, added Mr. Schouten. The plan is widely known to have been seeking partners for some time and in mid-2004 called off merger talks with MN Services, Rijswijk, the €20 billion pension plan for metal workers and mechanical engineers.
In January, Cordares made its first hedge fund investment of €100 million through a hedge fund of funds run by three managers, which Mr. van Bakel would not identify. It intends to gradually increase its exposure to the asset class, he added.