Austria is set to pass legislation allowing pension funds to invest directly in alternative investments in September.
Funds will be able to invest 10% of their assets into this asset class, either wholly in venture capital, wholly in hedge funds, or via a mixture of the two. Previously, investments have only been possible by means of a bond.
“Pension funds are already looking for hedge fund investment,” said Andreas Schneck, manager of European sales at Frank Russell. “But they are at the initial stage, they don’t have the expertise and they are going to go into hedge funds of funds.”
Andreas Schneck, an asset manager at Opag pension fund, confirmed its interest in the asset class. “We are going to try a small percentage of between 2% and 5% to see how it works and if it is successful we will use the whole 10% allocation.”
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