Torfaen County Council, a Welsh local authority, is leaning toward private equity in its bid to boost its pension fund's exposure to alternative investments, according to a spokesman for the £800m (€1.25bn) scheme.

Graeme Russell, the deputy director of finance at the council, said: "A recommendation has been made that the fund make a small allocation towards private equity. There may be an investment in hedge funds at some stage, but I think the feeling is that would not be quite right for us yet."