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.”
By Christine Senior
Enhanced powers for The Pensions Regulator (TPR) to prosecute and fine company directors who "wilfully or recklessly" put their defined benefit (DB) pension scheme at risk will be hard to enforce, commentators say.
Melrose has pledged to contribute up to £1bn to GKN's pension schemes as part of a final offer to acquire the engineering business.
Existing master trusts will be forced to pay £41,000 when applying for authorisation under the upcoming regime, the government has confirmed.
UPDATE 2 - DWP publishes DB white paper: Stronger powers for TPR, DB chair statements to be introduced
The Pensions Regulator (TPR) will be given the power to fine company bosses who deliberately puts their defined benefit (DB) schemes at risk, the government has confirmed.