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Komfie Manalo, Opalesque Asia:

A new study by J.P. Morgan’s capital introduction division has found that pension funds are shifting their hedge fund allocations towards strategies with "lower correlation, less volatility and minimal beta" and moving away from "traditional directionally oriented strategies."

The report says that pension funds are concerned with near-term prospect of rising interest rates, interest rate volatility and higher equity beta, reported PIOnline.

The study also forecasts that pension funds will increase their allocations into low-beta/market-neutral equity hedge fund strategies, while decreasing their investments in directional hedge fund that provide higher net long exposures.

Separately, research for Preqin’s latest Investor Outlook has found that four out of five institutional investors invest in at least one alternative asset class. Private equity, hedge funds and real estate are the most targeted alternative asset classes, with over half of investors having an allocation to each of them in their portfolios. Although the benefits vary significantly between asset classes, common reasons cited by investors for ho......................

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