Stichting Pensioenfonds Mars has almost doubled its allocation to hedge funds as the €1.5bn Dutch pension scheme reshaped its portfolio to provide greater protection against market volatility, according to a report by IPE.com.
The moves comes ahead of the fund’s planned transition to a defined contribution system.
The report cites the pension fund’ latest annual report as showing that it increased its hedge fund exposure from 11% to 21% during 2025. The additional allocation was made through larger investments in two existing funds-of-funds.
The move formed part of a broader shift away from public markets. The scheme cut its allocation to listed equities from 14% to 5%, while exposure to high-yield bonds fell from 7% to 4% and emerging market debt dropped from 11% to 4%.
Mars also introduced a new passive mandate investing in investment-grade government and corporate bonds, citing the strategy’s relatively low sensitivity to movements in equity and credit markets.
The pension fund, which serves around 4,500 members, has historically maintained relatively high allocations to alternative investments including hedge funds and private equity. It views the asset classes as providing diversification as well as access to an illiquidity premium.
The latest changes were driven in part by a desire to protect the scheme’s funding position before its eventual move to the DC system. The transition, originally planned for earlier, has been postponed to 1 January 2028.
Investment manager and board member Rianne Steenbergen said the portfolio had been deliberately structured to withstand financial-market shocks and help preserve the funding ratio ahead of the transition.
Mars’ funding ratio stood at 138% at the end of July.
