UK - Railpen Investments - which manages the assets of the Railways Pension Scheme -has invested £65m (US$109.3m) in a global long/short equity fund of hedge funds run by Goodhart Partners.
Railpen head of investment management Keith Shepherd said: "Goodhart has an innovative approach and distinctive range of funds that can complement pension scheme investment programs."
Investment analyst Paul Jeffries added this fund offers large institutions exposure to small and specialist hedge fund managers, with the degree of governance and due diligence these allocations require.
The scheme declined to comment on whether the mandate is part of a larger investment programme.
Goodhart partner Donny Hay said: "The investment by Railpen is clear validation for our belief that specialist multi manager strategies can appeal to the largest and most sophisticated investors."
At the end of June, Goodhart was managing £326m across three strategies: global long-short equity, global equity and target return - an absolute return bond strategy.
This comes after the Universities Superannuation Scheme intensified talks with global hedge fund managers to build up a direct exposure to the hedge funds.
The search is part of an investment programme launched by the fund's board of trustees in 2007 to invest 20% of its £23bn portfolio into alternatives.
The programme initially targeted other alternative asset classes such as private equity and has already deployed around half of the assets.
At the time, USS portfolio manager Emily Porter said: "We believe it is a good time now to launch this programme as the market is much less crowded than last year. This makes the access to top managers much easier than before."
The Pensions Regulator (TPR) has granted 11 master trusts extensions to apply for authorisation, as it confirms it has received 22 applications ahead of the 31 March deadline.
Aegon Master Trust, Fidelity Master Trust and Ensign have sent off their authorisation applications to The Pensions Regulator (TPR).
Self-administered pension funds spent £15bn on payments to pensioners in Q4 2018, but received just £12bn in contributions (net of refunds), Office for National Statistics (ONS) data reveals.
Aberdeen Standard Investments (ASI) and Gresham House are to team up to form a joint venture.