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Denmark’s €58.8bn Labour Market Supplementary Pension Scheme (ATP) will add tenders for infrastructure and real estate mandates in 2008, its chief investment officer for beta Henrik Jepsen told nrpn.
Over the past year ATP has cut its exposure to short term bonds and moved more of its assets into commodities, index-linked bonds, real estate and infrastructure.
But in Mr Jepsen’s opinion it is real estate and infrastructure that will help the defined benefit scheme fight inflation. He said: “These moves are based on the idea that our fund should do well in a large amount of scenarios. I believe this investment pattern will continue but it will be a steady plan, not stop and go.”
The fund has what it considers five categories of assets: equities, government and credit bonds, commodities and what it calls the ‘inflation fighting’ class.
These tend to be alternatives such as property and infrastructure, but there are also a few index-linked bonds.
“These types of assets have historically been a good hedge against inflation. We’ll be coming out with more mandates for them in 2008,” said Mr Jepsen.
The strategy appears to be working and Mr Jepsen said that despite recent market volatility the fund has performed well and no major strategic changes have resulted from the sub-prime crisis. In the third quarter of 2007 the fund grew by €402m. SA
