| Nestlé pension fund set to increase its alternative assets to about 20% |
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| 18/04/2004 | |
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Nestlé's, one of the most important Swiss pension scheme, will increase its alternative assets to 18% of the total. With SF 6,2 billion (£2,64 billion) assets under its management, the alternative assets of the agribusiness giant's pension fund will now amount to £469 million. The management of most those assets will be delegated to Unigestion, a Geneva-based fund of funds alternative managers which has a long business relationship with Nestlé. Performance seems to have been a major factor in Nestlé's drastic move. Jean-Pierre Steiner, corporate pension and risk director of the fund, said to the Financial Times that "performance has been like in the textbook: uncorrelated, stable returns within our risk parameters". According to the London-based newspaper, the scheme has grown on average by 12% on a yearly basis, allowing it to increase its alternative assets allocation, which was confirmed by a Nestlé spokesperson. The Swiss firm also explains its overweighting in alternative assets with the outperformance of this type of investment, mostly made of multi-strategy funds of hedge funds. The expansion in the alternative assets allocation of Nestlé, one of the first to invest in this asset class in Europe, has been dramatic over the last decade. From a 1% allocation in 1996, it then jumped to 5% in 2002 and 18% in 2004, which ranks the scheme as one of the most heavily weighted in alternative assets. Julien Laplante |
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Articles of the same Topic : Alternatives |
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