SWITZERLAND - The Baden-based ABB Investment Foundation has appointed an adviser to a new hedge fund of funds portfolio with an initial seeding of CHF67m.
The Foundation - which comprises 36 Swiss pension funds, including those of engineering giant ABB - has hired Goldman Sachs Princeton to oversee its first foray into hedge funds.
The initial commitment will be followed by a second wave of money from 10 pension funds which is expected to bring the total amount to CHF120m, said Daniel Dubach, chief investment officer.
Originally, the foundation was open to ABB pension funds only, explained Dubach. But this arrangement changed in 1999 when third party pension funds were permitted.
ABB is also looking to add another private equity fund to its current four-strong line-up.
The new global fund will target approximately CHF100m, said Dubach, and will be inherited by existing advisers Frank Russell Capital.
At the moment CHF400m has been committed to the asset class, which is expected to be set up during Q1, 2003.
By Madhu Kalia
This week's edition of Professional Pensions is out now.
The government is in talks with the UK and Irish pensions regulators over how to protect members of cross-border schemes in the event of a no-deal Brexit.
The equalisation of guaranteed minimum pensions (GMPs) is at least two years away from being completed, and could take longer than four years for some schemes, a poll has found.
The Pensions Regulator will consider if schemes should be required to have professional trustees and assess the case for greater regulation of administrators and system providers, PP can reveal.