Denmark's PFA slashes property fund costs by taking direct approach abroad
With real estate returns under pressure, the Danish pension fund plans to eschew costly intermediary funds and make more direct investments abroad. A large investment deal is already in the pipeline in Asia, PFA's CFO tells EjendomsWatch, AM's sister site, in an interview.
Farmland has performed well in an otherwise horrendous year for risky assets. Institutional investors generally search for uncorrelated return streams, potential green benefits and inflation hedges, and while the asset class ticks these boxes, it also comes with significant risks.
PFA’s real estate department is changing its strategy in expectation of more interest rate increases and recession, says the head of Nordic real estate, while three projects are being paused as ”it didn’t make sense to keep going.”
New opportunities to allocate more to riskier assets mean changes are being made at ATP. A restructuring of the central IT system has been the toughest nut to crack in the restructuring, which has been described as the most comprehensive change in the pension giant’s 60-year history.