NETHERLANDS - Blue Sky Group, manager of the KLM Royal Dutch Airlines' corporate pension fund, said it is considering so-called hedge fund replication strategies for its investments.

Gerard Voskuil, equities strategist at the fund manager, told IPE: "By possibly investing in hedge fund replication strategies, our clients could profit from these alternative risk premiums without having to pay the attached high management fees."

The group is considering following hedge funds moves which use alternative betas, using alternative risk premiums instead of truly delivering alpha.

"As we apply realistic alpha management next to integral balance management, alternative betas could start playing a role, but we only want to pay higher management fees for true alphas," added Voskuil.

Blue Sky has been highly sceptical of alternative investments so far and, until now, commodities, hedge funds, and private equity were nowhere to be found in the portfolios of Blue Sky's KLM clients.

But the group did announce its pioneering commitment to the concept of 130/30 funds earlier this year.

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