SWEDEN- Sweden’s e2.6bn AP7 default fund has delayed the decision to allocate a total of $170m (e195m) to hedge funds and private equity. AP7’s board met yesterday to pick alternative investment managers from a shortlist but instead postponed the decision for at least three weeks.

According to AP7 vice president Richard Gröttheim the delay centres on concerns about pricing the investments into daily NAV calculations and on them meeting the fund’s well-publicised ethical guidelines.

He denies the delay is indicative of a fundamental change in attitude towards alternatives and instead says the board retains a positive outlook. “We have come a long way on this and the probability of the project being scrapped is quite small.”

Last November the fund announced it was allocating $85m to a hedge fund of funds with a balanced multi-strategy approach and the same amount to private equity investments that include both venture capital and buy-out.

The board failed to set a date for its next meeting but Gröttheim says it will convene again in around three weeks.

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