The rapidly-growing NZ$6bn (€3.3bn) New Zealand superannuation fund is to raise its allocation to alternative investments to 35%, giving it one of the largest allocations to this area of any institutional investor.

The fund, which began investing 17 months ago, currently has a 13% allocation into hedge funds, private equity, infrastructure, commodities, forestry and property. It plans to increase this to 20% by June 2007 and 35% in the long-term. By 2007 the fund estimates it will have doubled in size to NZ$12bn.