Rabobank Pensioenfonds has removed more than $500m from the funds of hedge funds sector, saying it doubts their utility and dislikes their lack of transparency.

Rabobank Pensioenfonds, with $15.4bn under management, is one of the 100 largest pension plans in Europe and, according to its annual report, has decided to put its money into equities instead.

The pension plan’s disaffection with funds of hedge funds began in 2008. The average performance of the five funds of hedge funds it invested in was a loss of 12.5 percent.