PFA Developing Cross Asset Overlay Team

This year will mark 100 years of PFA. The pension is a leader in managing both liquid and alternative investments internally, with around 20% of the fund invested in alternatives such as real estate, infrastructure and private equity, capturing liquidity risk premium. The course of risk and return characteristics of those alternatives are such that it does not generate the same amount of risk as traditional assets. Now, PFA have introduced an overlay team to compensate for the lower risk in the alternative pocket. Georgia Reynolds spoke with PFA’s Henrik Stig Eybye Nordestgaard on the Danish fund’s developments of the Overlay team.