WEST PALM BEACH, FL (www.hedgeco.net) – A growing number of Pension fund managers in the United Kingdom have steadily allocated more assets to the fastly growing hedge fund industry. According to newpublished reports, about 75 of the U.K. based Pension fund managers have invested with hedge fund managers. Traditionally U.K. Pension fund managers have stayed clear of hedge funds, which wereperceived a few short years ago as unsuitable investment vehicles for assets of hard working citizens who may depend on such money to go into retirement.
Such thinking has radically changed over the years. As increasing numbers of workers continue to enter into retirement, many U.K. Pension fund managers fear that their funds are not growing fast enough to cope with the simultaneous growth being seen from the numbers of workers entering or approaching retirement.
At first few Pensions fund managers ventured into hedge funds, but the ones that began investing with hedge funds, also realized healthy returns even as the bond and equity markets faltered. A new report by Morgan Stanley concluded that, �Even in the conservative UK pension fund market with consultants as drag anchors, we estimate that over 75 UK pension funds have now made allocations to hedge funds.� According to the report, most of those managers are devoting their assets into hedge funds via the fund of funds route.
The report also noted that, �Asset liability management and diversification are asserting their dominance in pension fund and institutional thinking, and many investors have been given a sharp lesson in portfolio concentration risk.� Furthermore it said, �The urgent search for alpha, a growing wanderlust of clients increasingly happy to switch to best-in-class managers and significant changes in pension fund regulations from 2006 are all issues to manage.�
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
HedgeCo.Net is the most popular hedge fund database and community in the world. Membership on HedgeCo.Net is free and easy. We also offer free listings for Hedge Funds!
Be sure to check out our sister sites. www.hedgefundlounge.com, www.hedgefundtools.com, and www.hedgefundemployment.com.
