UK - The Universities Superannuation Scheme, the UK's second-largest defined benefit pension plan, has started work on the creation of an in-house fund of hedge funds.

A statement issued today by the £23bn (€27bn) pension fund said UBS Global Asset Management - Fund Services  will provide hedge fund of funds administration services.

Officials say no selections have yet been made for inclusion in the FoHF, but preparations are under way now UBS has agreed to act as administrator to any investments it makes.

USS officials revealed in June they had been investing in hedge fund replication but were planning to invest 5-6% of its assets in hedge fund strategies..

Mike Powell, head of alternatives, at the time said they were looking mainly at single strategy funds rather than outsourcing to external managers. (See earlier IPE story: USS to invest in evolving hedge funds market)

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