UK - The Universities Superannuation Scheme has appointed UBS Global Asset Management - Fund Services to deliver hedge fund of funds administration services.
The country's second largest pension fund said it had enhanced its in-house hedge fund selection capability in recent months, by implementing an absolute return strategies programme.
The funds will be administered by UBS's fund services Ireland operation.
USS head of alternative assets Mike Powell said: "UBS's appointment follows an in-depth review of leading providers. We were impressed with UBS's dedicated fund of funds team and the accessibility of UBS's personnel at all levels to us."
The pension fund said its absolute return strategies programme invests in hedge funds and is expected to increase its exposure to the sector to around a quarter of its total alternatives allocation.
USS plans to invest 5% of its asset allocation in individual hedge funds over the next 18 months to two years. The fund has opted to boost its investment in alternative strategies to 20% in the medium term.
In June the pension fund announced it was in talks with global hedge fund managers to build up a direct exposure to the asset class.
It appointed Luke Dixon to work along side Emily Porter in its dedicated hedge fund team (Global Pensions: March 2, 2009).
USS said it was aiming to hire 25 hedge fund managers. The average allocation to each manager would be £50m, but it could vary substantially according to the investment approach.
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