European Pension Plans to Teach Clinic on Alpha-Centric Investing
| Oct 16th, 2006 | Filed under: Institutional Investing | By: Alpha Male |
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By: Beatrix Payne, Pensions & Investments
Published: October 16, 2006
Dutch plan PGGM and Danish plan ATP have both adopted alpha/beta separation strategies.
According to P&I, the $100 billion PGGM plan has become “one of the first European institutions to manage assets according to alphas and betas.”
CIO, Leo Lueb eschews traditional asset class investing that effectively bundles “beta”, “enhanced beta”, and “alpha” in favour of a trifurcated approach. Says P&I:
“Until now, the plan would have had one manager trying to implement the three approaches in each asset category, he said. The new approach opens a whole universe of investment strategies that the plan could not embrace under the previous arrangement because investments were managed according to traditional asset class definitions, he added.”
Related Link: PGGM’s Absolute Return Strategy
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[...] Notwithstanding the recent hype about alternative beta, Jelie Beenan is just about the only guy in the world with the actual title, “Head of Alternative Betaâ€. His employer PGGM (see previous posting) manages 70 billion Euros for Dutch social services workers. And taking its cue from many aspects of Dutch society, PGGM seems to be comfortable pushing frontiers of accepted norms. [...]