WEST PALM BEACH, FL (www.hedgeco.net) – Lackluster equity performance continues to drive pension funds towards alternative investments, according to a new study conducted by JPMorgan Fleming AssetManagement. The new study polled 111 pension fund managers and about 58 percent of the managers said they have changed their attitudes towards alternative investment due to lackluster equityperformance in recent years.
Two thirds of the pension funds that responded to the poll said poor results from equities have made them to consider other non-traditional investments such as hedge funds. The managers also said they were also interested in building more diversified portfolios. While current levels of investments in hedge funds remain low, the managers said they plan to increase their hedge fund investments in the coming years.
Details of the study show that, �40 percent of the pension fund managers are considering investment in hedge funds and 45 percent plan to invest in currency overlay in the next 18 months.� Of those pension funds investing in alternatives, �the average percentage of a scheme’s portfolio committed to property was 8.1 percent, hedge funds 5.5 percent, and private equity 2.3 percent.�
Peter Ball, head of UK Institutional Business at JPMorgan Fleming Asset Management, said, “An overriding theme emerging from the survey is that pension schemes currently allocating assets to alternative investments are highly satisfied with investment performance.� Ball added, “The majority surveyed state that returns had either met or exceeded expectations for all asset classes, which is a strong endorsement of non-traditional assets, especially during a difficult time for stock markets.”
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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