AP7, Sweden's seventh national pension fund, will have legal clarification over whether or not it can invest in private equity and hedge funds at the end of June.
Daniel Barr, the EUR1.65bn fund's chief analyst said that at present the fund was uncertain whether or not investing in alternative investments would be in conflict with Swedish regulations. Barr said that the fund's lawyers, Swedish firm Cederquist, would have an answer for them by the end of next month.
If AP7 receives legal clearance, the fund is looking to invest between EUR83m and EUR165m in private equity and hedge funds. Searches for a consultant to assist them and fund managers would begin in the third quarter of this year.
Barr said that mandates would probably be awarded at the start of next year. In total, alternatives would make up between 5% and 10% of the fund's total assets.
Additionally, AP7 is set to release a blacklist of companies the fund will not invest in. Barr said that on July 1 the list will be released, and that companies on the list have been blacklisted on ethical grounds. As an example, Barr said that the SRI black list will feature companies highlighted by the United Nations for the manufacture of landmines or for environmental reasons.
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