NETHERLANDS – Stichting Nedlloyd Pensioenfonds (SNP) plans to reduce its real estate allocation in a bid to close the gap between annual premiums of €5m and pension payouts close to €75m.
As part of the plan, the €1.2bn pension scheme has mandated consultancy Almazara to advise on the management of its non-listed real estate portfolio following a tender involving multiple, unidentified consultancies.
The portfolio, which comprises investments in 10 non-listed core European funds, is part of an overall €175m allocation to real estate.
SNP CIO Frans Dooren said: "We're investing with two people, and we need help with the real estate portfolio because it's not where our expertise is. Even changing contracts is a lot of work."
He told IP Real Estate the scheme's current 15% allocation to real estate – which, with private equity, makes up the illiquid component of its overall portfolio – would be too high for the mature scheme "within a few years".
"We have to manage cash outflows," he said. "At the moment, they're coming from credit and listed equities, but when you always have to pay from credit and listed equities, those portfolios become too small."
SNP, which manages the pensions of former employees of shipping company Maersk's Dutch subsidiaries, expects Almazara to ensure its core portfolio is sufficiently diversified and income-focused.
Almazara partner Wietse de Vries was unable this week to provide details of either the portfolio or his plans for it, citing a confidentiality agreement with the scheme.
"The focus will indeed remain to be on core, more specifically on a portfolio that provides diversification vis-à-vis other asset classes and is aimed to generate a relatively high level of liquidity," he said.