Anders Schelde, the chief investment officer of Akademikerpension, says the external allocations the USD 20bn investor makes exclude hedge funds because "I don’t think they create the value they say they do."

Schelde said he sees no point in trying to identify top performers. "The only thing we know for sure is that they want 2/20"and "we don’t want to finance that." (Hedge funds typically charge a management fee of 2 percent of total assets, and a 20 percent performance fee from profits.)