SWEDEN - Sweden's first national fund, AP1, has decided to go against the grain and adopt a global strategy for alternative investments.
A spokeswoman for the e15bn fund said that unlike other AP funds, AP1 had decided to invest in Western Europe and North America.
The fund has a long term objective to increase its investments in alternatives to 10% from current levels of 2.3%.
Sofia Ericsson (pictured), AP1’s head of alternative investments, said that the fund was planning to focus on private equity this year and would also begin researching hedge funds and real estate funds.
AP1’s spokeswoman added that to increase its investments in private equity, the fund was considering various options, one of which could be to hire private equity managers.
Currently, the fund has just one investment in private equity, made directly in Amaranth Capital, a fund that invests in Nordic small-cap equities, where it has committed a maximum of e75m.
The fund’s real estate investment consists of a 25% holding in AP Fastigheter. AP1 has no hedge fund investments.
“The goal for alternative investments is to build up a well-diversified, high quality portfolio over time. In order to further diversify the portfolio, the fund will also allocate investments between vintage years, fund strategies, investment stages and number of funds,” Ericsson added.
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