Other investments

Varma's other investments consist of hedge funds, inflation-linked investments and commodities. At the end of March 2017, other investments accounted for 18 per cent of the investment portfolio.

Hedge fund investments made up 15 per cent of the portfolio. The portfolio is diversified across several different funds and investment strategies. The investments are allocated to low-risk and liquid funds and to longer-term opportunistic funds.

Varma's inflation-linked investments include inflation-linked bonds issued by states with good creditworthiness. The proportion of commodities in the portfolio is low. The diversified commodities portfolio includes investments in, for example, energy, raw materials and food products. Commodity investments are made through funds and derivatives.