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Swedish PPM includes hedge funds

4/7/2009 - www.thehedgefundjournal.com

The Swedish state pension platform, PPM includes with immediate effect Salus Alpha funds in the premium pension portfolio. The Salus Alpha funds are UCITS III compliant therefore they meet the strict requirements regarding transparency, daily liquidity and adequate administration procedures set up for the Premium Pension Authority. All Salus Alpha funds are transparent, daily liquid and are managed by qualified and experienced experts.

The Swedish pension system is divided in three parts; income pension, guaranteed pension and premium pension. For the premium pension the pension saver has a number of funds to choose from. Every pension saver can decide in which fund and what amount of money he wants to invest. At the moment the Premium Pension Authority’s fund holdings of 5.8 million pension savers are valued at a total of 27.5 Billion Euro (SEK 308 billion).

The funds newly-included on the platform are Salus Alpha Real Estate, as well as the multi manager funds Salus Alpha Event Driven, Salus Alpha Managed Futures and Salus Alpha Equity Hedged.

By including these funds in the portfolio the Swedish Premium Pension Authority confirmed the market leadership of Salus Alpha in the regulated alternative investment sector. Salus Alpha was the first asset manager world wide to introduce hedge fund strategies as UCITS III compliant funds.

The Salus Alpha funds have the ability to cope with every market situation and to react quickly to changes. Investors need market independent products with positive returns. Salus Alpha offers Investment products that are in top form especially in this difficult market situation - because even in downwards trends profit potential does exist.

It’s time for the Austrian and German pension funds to rethink their strategy by focusing on asset classes which are able to secure the paid-in assets in the current difficult market situation. For retirement provisions the reduction of market risk should be the first priority and not speculation. The biggest risk for the future value of a pension is the short fall risk, especially if an investment product was selected due to assumption of historic performance. Investment products which reproduce market risk should not be selected since there is no guarantee for future performance as the current situation shows. Investments in ETFs offer quick and easy market access, however a short fall seems programmed because the market risk is not managed.

By launching the first UCITS III fund that tracks a Hedge Fund Index in September 2007, Salus Alpha paved the way for Hedge Funds as optimal portfolio component for retirement provisions. Especially by adding Multi Manager Alternative Investment products the returns can be increased while decreasing the risk. Alternative Investments are more independent of the stock market and more flexible than traditional asset classes thereby being able to reduce the risk in the portfolio.

Particularly for retirement provisions it is important to invest in products that are independent of negative market developments. Therefore daily liquid UCITS III Multi Manager Alternative Investment Funds are the perfect solution for pension funds.