AP7, Stockholm, may invest in hedge funds, said Daniel Barr, chief analyst for the 15 billion kroner ($1.46 billion) fund. "We are looking into it thoroughly, he told delegates yesterday at the Nordic Fund Management Forum 2001 in Stockholm.
He said investing in a hedge fund of funds containing at least 15 managers would produce comfortable risk-return levels, and the plan would invest between 5% and 10% of total assets in hedge funds, private equity or both. He did not give further details or indicate when the fund would begin a formal manager search.
AP7 was set up as a default pension fund for Swedish citizens who did not choose managers to run their assets held in the newly launched 56 billion kroner defined contribution system, Premiepensionsmyndigheten.