Germany’s largest public pension scheme, BVK
(Bayerische Versorgungskammer), is planning to add two or three
more funds of funds to its already sizeable roster.
The $68 billion scheme, which is based in Munich, currently
holds seven FoHFs that manage a total of $3.7 billion. While
many investors are looking increasingly to invest directly,
BVK’s relatively small hedge fund team still sees
FoHFs as the most effective way to implement its investment
Typically, BVK will look to invest in a multi-strategy
vehicle, and then request more 'bespoke’ services
if the allocation works.
The scheme places more importance on funds that meet their
return target and provide a stable returns profile than those
that generate excess returns, partly due to its master/feeder
structure as the manager for a number of smaller public
pensions, which have their own varying return targets.
The scheme is understood to be 'very open’ to
FoHFs with a particular skew towards emerging managers, as it
believes there is a 'sweet spot’ in terms of