AP7, Sweden's seventh national pension fund, will have to wait until August to know whether or not it is allowed to invest in private equity and hedge funds by the end of September.
Originally, Cederquist - AP7's lawyers - was to have had an answer for them by the end of June. However, Richard Grottehiam, the fund's deputy executive president, said that the fund would now have to wait until the end of August for an answer, as Swedish regulators and other personnel involved in the case are on holiday.
Currently, Swedish regulations state that AP7 can invest in fund-of-funds products. The fund consulted Cederquist as it was unsure whether or not that definition included hedge funds and private equity investments.
If it does receive legal clearance, AP7 will invest between EUR83m and EUR165.3m in private equity and hedge funds. Searches for a consultant to assist them and for fund managers would begin in September. Daniel Barr, the fund's chief analyst, said that managers would probably be appointed at the start of next year. In total, alternatives would make up between 5% and 10% of AP7's total assets.
By Geoffrey Ho
The Pensions Administration Standards Association's Margaret Snowdon won the coveted Pensions Woman of the Year award. She tells Stephanie Baxter about lessons she has learned along the way.
Defined benefit (DB) schemes are set to shorn themselves of over £300bn of liabilities between 2019 and 2021 as they continue to mature, Mercer predicts.
This week's top stories include the Competition and Markets Authority issuing its final report for the investigation into investment consultants, and The Pensions Regulator launching its first fraud prosecution.
Many investment portfolios that rely heavily on stock-bond diversification to manage risks may not be protected against inflation surprises. Real assets offer a solution.