SWEDEN/US - Swedish pension buffer fund AP2 and US pension fund manager TIAA-CREF have formed a joint venture targeting agricultural real estate.
The funds will invest primarily in grain production assets in the US, Australia and Brazil.
AP2 will invest $250m while TIAA-CREF will serve as majority shareholder and administrator.
Officials at AP2 said the investment will serve to diversify the SEK220bn ($35bn) portfolio. TIAA-CREF, which managed a portfolio of $400bn, could not immediately be reached for comment.
"TIAA-CREF has a well-developed platform for agricultural investment where environmental considerations and social responsibility are integrated. The Second AP Fund has carried out a comprehensive sustainability analysis of TIAA-CREF's guidelines, policies and processes and considers that they are of very high quality," AP2 said in a release.
AP2 chief executive Eva Halvarsson added: "We anticipate that the newly established company's investments will promote productivity gains and long-term, well-managed and profitable agriculture that, in a sustainable manner, will help meet the growing global demand."
A suite of liability driven investment (LDI) indices has been launched by STOXX and RiskFirst to aid trustees and consultants select, monitor and challenge managers.
British Airways and the trustees of one of its pension schemes are set to argue over the purpose of a pension scheme, leading to an impactful judgment for DB pensions. James Phillips explores the issue
Bank of England governor Mark Carney has said there is still a lot of data to consider before the Monetary Policy Committee (MPC) can decide when to next hike interest rates.
Savers are not squandering their tax-free lump sums under Freedom and Choice but are taking a more cautious approach to retirement, according to Prudential research.