Institutional Investors

Dutch Philips backs away from hedge funds

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The $17 billion Philips Pensioenfond in the Netherlands has decided to withdraw from hedge funds as an asset class as part of a strategic reallocation.

Since the fund’s previous strategic review in 2008, it said, much has changed, citing the financial crisis and the changing macro-economic environment, as well as the fund’s shift to passive investment in developed market equities. It has also made a review of the added value of different asset classes.

As a result, it will pull out of both hedge funds and private equity, using the proceeds to fund investments in emerging-market equities, emerging