Mars pension fund doubles hedge-fund allocation to 21%

Stichting Pensioenfonds Mars increased its hedge fund allocation from 11% to 21% during 2025, nearly doubling exposure as it reduced public-market positions.

The €1.5 billion Dutch pension scheme made additional investments by raising commitments to two existing funds-of-funds. Listed-equity holdings were cut from 14% to 5%. Exposure to high-yield bonds fell from 7% to 4% and emerging-market debt decreased from 11% to 4%.

Mars introduced a new passive mandate that invests in investment-grade government and corporate bonds, selected for lower sensitivity to equity and credit market swings. The fund reported the changes in its latest annual report.

The rebalancing was carried out ahead of the scheme’s planned transition to a defined contribution system, which has been postponed to 1 January 2028. Mars reported a funding ratio of 138% at the end of July and serves about 4,500 members.

Mars has a history of relatively large allocations to alternatives, including hedge funds and private equity. The trustees view those assets as sources of diversification and as a way to access an illiquidity premium in less liquid markets.

Rianne Steenbergen, investment manager and board member, described the portfolio as deliberately structured to withstand financial-market shocks and to help preserve the funding ratio in the lead-up to the transition.