Germany’s BVK pension plan commits to volatility risk premium fund

Bayerische Versorgungskammer, Germany's largest public pension fund, committed an undisclosed amount to RP Vega Fund for volatility risk premium investments, a BVK spokeswoman said.

The spokeswoman for the Munich-based €82 billion ($86.3 billion) pension fund would not disclose the size of the commitment to the €500 million fund.

RP Vega Fund is a volatility risk premium strategy that invests on a global basis and is managed by RP Crest. An RP Crest spokesman said the strategy explores opportunities in volatility risk premiums on a diversified basis by offering exposure to futures, foreign exchange, equity and bonds.

The BVK spokeswoman said the pension fund “intends to expand fund engagements in various segments” but would not comment on the specific asset classes or funds.