AP3 has further diversified its portfolio by investing £20 million in the Henderson PFI Secondary Fund, which invests in infrastructure assets such as hospitals, schools and railways.
AP3 is participating in the funds third closing and the Henderson PFI Secondary Fund is expected to have one further closing at which it is expected to grow to about £300, which would entail AP3 holding just over 6% of the fund’s assets.
The initiative is part of increased diversification of the AP3 portfolio. AP3’s alternative investments have previously consisted solely of private equity and real estate. In addition to this latest initiative, AP3’s alternative investments will in 2005/2006 be extended to investments in small listed research companies in the pharmaceuticals sector. In traditional investments, the current investment programme will be supplemented by investments in emerging markets.
Bengt Hellström, AP3 Head of Alternative Investments, said: “The investments in infrastructure assets suit us well as a pension fund because they are long-term and offer relatively high and stable returns at a low level of risk. This is beneficial for the long-term performance and risk diversification of our pension assets. The fact that this particular fund purchases its assets in the secondary market also eliminates the “construction risk.”
Further information about Henderson is available at www.henderson.com.
Christina Kusoffsky Hillesöy, Communications Manager: phone +46 8 555 17 123,
mobile +46 709 517223, email@example.com
Bengt Hellström, Head of Alternative Investments: phone +46 8 555 17 145,