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Dutch pension fund nearly doubles hedge allocation to 21% for volatility

Stichting Pensioenfonds Mars also cut listed equities to 5% and says the changes aim to protect its funding position ahead of a postponed move to a defined contribution plan in 2028.

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Stichting Pensioenfonds Mars, a Dutch pension scheme with about 4,500 members, has nearly doubled its hedge fund allocation to 21% as it reshaped its portfolio to better withstand market volatility, according to Hedgeweek. The pension fund, which is preparing for a planned transition to a defined contribution system, increased hedge fund exposure from 11% to 21% during 2025 by expanding investments in two existing funds of funds. The shift is part of a broader move away from public markets.

As part of that rebalancing, Mars cut its allocation to listed equities from 14% to 5%, reduced high-yield bond exposure from 7% to 4%, and lowered emerging market debt from 11% to 4%. It also introduced a new passive mandate for investment-grade government and corporate bonds, citing relatively low sensitivity to equity and credit market moves.

The fund said the changes were driven in part by a desire to protect its funding position before the transition. Hedgeweek reports the move to the defined contribution system has been postponed to January 1, 2028, with board member Rianne Steenbergen saying the portfolio was structured to withstand financial market shocks and help preserve the funding ratio ahead of the switch.

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