A super fund has been launched in the United Kingdom by a UK-based fund manager.
It was announced on Monday by Jordan Big Fund, which is owned by the world’s biggest private equity fund manager, Macquarie Group.
The fund is aimed at helping pension funds manage a risk-free portfolio of funds.
It will be launched in 2018 and aims to provide access to funds which are undervalued, with a focus on funds that have significant underperformance in their portfolios.
Jordan Big Fund has a total of around €100 billion in assets, and it is the biggest private investment fund in Europe.
Its chief executive, Paul Ralston, said: “The fund aims to be a very low-cost alternative to traditional fund managers and is designed to provide a stable, affordable investment for the UK pension fund market.”
“The fund will help to bridge the gap between traditional fund management and the investment markets by providing investors with a diversified portfolio that is both safe and secure.”
“It will also allow pension fund investors to take full advantage of the low fees available to them through a dedicated fund account, with access to a range of investments.”
The fund, which will be managed by a US-based firm, has raised a total funding of €10.5 million ($13.5) from Jordan Big fund and Macquari Group.
Jordan says the fund will be used to invest in low-risk, low-growth funds, and its target is to provide investment services to more than 1.5m UK pension funds.
The UK’s largest pension fund, the RBS Group, has also signed up to the fund, as has the UBS Private Equity Group.