Spain's single largest pension fund is set to be launched this month, with the announcement by state owned SEPI (Sociedad Estatal de Participaciones Industriales), the country's largest industrial group, that it is to externalise its Pts 1.2trn ($8bn) assets to fund managers.

A spokesperson for SEPI said: This move is part of an ongoing privatisation process by the government, including the removal of pension provisions from company book reserves, which was hampering business.""