The Plover and the Crocodile: Pensam's win-win story with TIAA
When Danish pension fund Pensam hired Carsten Grøhn in 2015, his assignment was clear: Re-think our private equity strategy to give us more control and better returns. In response, Grøhn turned Pensam into an Egyptian plover.
You've seen it on a nature documentary -- the tiny Egyptian plover implausibly cleaning the teeth of crocodiles swimming in the Nile. In a win-win situation, the bird feeds and the crocodile's mouth stays healthy.
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.