Institutional Investors

Finland's KEVA looks directly to hedge funds

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The local government pension fund has invested via FOHFs since 2001, but now plans to diversify into direct investment to improve returns and transparency.

The local government pension fund has invested via FOHFs since 2001, but now plans to diversify into direct investment to improve returns and transparency

By Pirkko Juntunen

Finnish institutional investors have embraced hedge fund investments over the past few years and, despite the fall in equity markets in 2008, institutional investors in Finland still invest an average of 4.3% of total assets in hedge funds. Compared to the figure of 5% at the end of 2008, the allocation has fallen in the first three months of 2009 - but it has remained fairly stable over the years.