Industriens Pensionsforsikring, Copenhagen, Denmark, plans to revamp its investment portfolio to include more alternative assets, including raising its private equity target to 7.5% of assets from the current 5%, Jan Oestergaard, CIO of the 45 billion Danish kroner ($8.1 billion) fund, said in an interview.
Fund officials are considering emerging markets private equity, possibly including South America and Africa, Mr. Oestergaard added. They also plan to expand the funds real estate strategy to 2% of assets by the end of the year from a current allocation of less than 1%. The long-term target for real estate is 5%, though theres no specific timeframe for completing the allocation.
Fund officials are also considering an absolute-return strategy. In the short term, we just want to get started. I cant give a target, Mr. Oestergaard said. But in my mind, I can picture that in five years, well have 5% to 10% in this strategy.
All of the changes will be funded through a combination of new cash inflows and a reduction in the bond allocation, which totaled about 56% of assets as of Dec. 31.