The Nfl111bn (&euro50bn)Zeist-based PGGM, the Dutch-based pension fund for social and healthcare workers, is set to decide within two months its strategy for its Nfl3.4bn to Nfl5.6bn commodity investments. PGGM is discussing whether to invest directly in commodity futures using outside expertise or arrange a total return swap with an investment manager, says Alfred Kool, head of corporate communications. The amounts to be invested in commodities represent 3% to 5% of total assets and is the strategic allocation for the coming years.

PGGM believes commodities will provide a good diversification tool as they are negatively correlated with equity and fixed income markets.