Tue, Aug 30, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Average large North American public pension fund allocates 5.7% to hedge funds in FY2011 says Infovest21

Wednesday, October 26, 2011
Opalesque Industry Update - In its just-released Special Research Report, Infovest21 finds that the average large public pension fund which allocates at least $1 billion to hedge funds and funds of funds, allocates 5.7% to hedge funds and absolute returns funds in FY2011, an increase from 5.4% in FY2010 and 4.5% in FY2009.

Average Asset Allocation of 25 Large Public Pension Funds (%)

 

 

Equity

Bonds

Absolute Return/ Hedge Fund

Other Alternative Investments

Private Equity

Real Estate

Cash/ Short Term

Other

2011

48.2

22.4

5.7

3.9

5.8

8.2

1.1

5.1

2010

46.6

23.9

5.4

3.2

5.7

7.7

1.7

5.2

2009

47.5

23.4

4.5

2.7

5.5

8.4

2.5

5.0


The table above, which shows aggregated results for the past three fiscal years, highlights that the average allocation to equities increased to 48.2% in FY2011 from 46.6% in the prior year. However, the average allocation to fixed income declined from 23.9% in FY2010 to 22.4% in FY2011, notes Lois Peltz, President of Infovest21.

Private equity increased slightly from 5.5% in FY2010 to 5.8% in FY2011. Real estateexposure dropped from 8.4% in FY2009 to 8.2% in FY2011. Other alternatives increased from 2.7% in FY2009 to 3.9% in FY2011.

In compiling these results, Infovest21 tracked the asset allocation trends for 25 large public pension funds as far back as annual results were provided. Of those, 22 were based in the US and three were based in Canada. The sampling includes those pensions that allocate at least $1 billion in assets to hedge funds/funds of funds and publish their asset allocation on at least an annual basis. These findings make up Part 1 of the special research report.

Part 2 includes asset allocation findings of another 18 US pension plans whose allocations to hedge funds are under $1 billion.

For additional information, contact: general@infovest21.com

(press release)


BG

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Strategies - The 'Holy Grail' hedge fund strategy to handle a black swan the size of World War I, Hedge funds get more pushback on terms as enthusiasm for strategy wanes[more]

    The 'Holy Grail' hedge fund strategy to handle a black swan the size of World War I From IBTImes.co.uk: To illustrate a strategic gap common to today's portfolio managers, George Sokoloff, PhD, founder and CIO at Carmot Capital, proposes an interesting thought experiment – a breakdown of

  2. Institutional investors - Investors set to increase allocation to private debt, With investment income key, Richmond retirement system faces funding challenges[more]

    Investors set to increase allocation to private debt Investors are set to increase their allocation to private debt, with 60% revealing they believe the private debt market will grow over the next 12 months, according to a new study by Elian, a leading funds services provider. 41%

  3. Investing - Hedge funds snap up banks, unload Apple, Some of hedge funds' favorite stocks are finally starting to beat the market, Einhorn's Greenlight shifts positions, Treasury yield climbs to two-month high as Fischer joins hawks, 9 stocks smart investors put their money in last quarter[more]

    Hedge funds snap up banks, unload Apple From Barrons.com: Prominent hedge funds have a newfound love of big banks, and some have a distaste for shares of Apple, regulatory filings released last week show. The filings suggest that the funds have been pivoting their portfolios in recent mon

  4. Chesapeake energy seeks $1 billion loan to refinance debt[more]

    From Bloomberg.com: Chesapeake Energy Corp. is seeking a $1 billion loan as the company battered by cratering fuel prices and credit downgrades takes a step to address its $9 billion debt load. The natural gas producer hired Goldman Sachs Group Inc., Citigroup Inc. and Mitsubishi UFJ Financial Group

  5. Institutions - Nordic pension funds magnify focus on unlisted and direct investing, building up teams[more]

    From IPE.com: As bond yields remain at low or negative levels, pension funds and other institutional investors in the Nordic region are stepping up efforts to find higher returns by adding more unlisted investments to portfolios and are expanding in-house teams in order to do this, according to new