Tue, Mar 3, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Average large US public pension allocates 7.4% to hedge funds

Monday, October 15, 2012
Opalesque Industry Update - In its just-released Special Research Report, Infovest21 examined the asset allocation of 26 large US public pension funds which allocate at least $1 billion to hedge funds. In this sample, the average large public pension fund allocates 7.4% to hedge funds/absolute returns funds in FY2012, an increase from 6.5% in FY2011.

FY

Equity

Fixed Income

Absolute Return/ Hedge Funds

Other
Alternative Investments/
Private Equity

Real Estate

Cash/ Short Term

2012

41.3

21.8

7.4

10.7

5.7

2.2

2011

43.8

22.6

6.5

9.7

7.0

1.8

2010

45.9

24.9

6.5

8.2

5.4

2.1

2009

46.9

25.9

6.5

8.5

5.4

2.5

The table above, which shows aggregated results for the past four fiscal years, highlights that the average allocation to equities decreased to 41.3% in FY2012 from 46.9% in 2009. The average allocation to fixed income declined from 25.9% in FY2009 to 21.8% in FY2012.

Other alternatives/private equity increased from 8.5% in FY2009 to 10.7% in FY2012. Real estate exposure fluctuated from 5.4% in FY2009 to 7.0% in 2011 and then dropped to 5.7% in FY2012.

Lois Peltz, president of Infovest21, said Infovest21 tracked the asset allocation trends for 26 large public pension funds as far back as annual results were provided. Of those, 24 were based in the US and two were based in Canada. The sampling included those pensions that allocated at least $1 billion in assets to hedge funds/funds of funds and publish their asset allocation on at least an annual basis.

Press release

bc

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. Investing - Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched, Myriad hedge fund sold bulk of its Alibaba stake last year[more]

    Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched From Valuewalk.com: As hedge fund manager Seth Klarman, leader of the $28 billion Baupost Group, reviews 2014 performance and considers investors gained near 7 percent on the year, he cons

  2. Investing - As rig count falls, hedge funds pile into long crude futures, Parus tactically shifts long/short exposure ratios, Mario Draghi outflanking Kuroda as bearish euro bets surge, Prime Capital’s 500.com bet derailed after 41% drop[more]

    As rig count falls, hedge funds pile into long crude futures From 247wallst.com: In the week ended February 27, the total number of rigs drilling for oil in the United States came in at 986, compared with 1,019 in the prior week and 1,430 a year ago. Including 281 other rigs mostly drill

  3. Opalesque Exclusive: dbSelect’s top ten FX strategies average almost 10% in January[more]

    Benedicte Gravrand, Opalesque Geneva: In one of Deutsche Asset & Wealth Management (AWM)’s hedge fund platforms, called dbSelect, a number of FX Strategies did very well in January. dbSelect is a managed investment platform for unf

  4. Opalesque Exclusive: SEC’s Mark J. Flannery warns hedge funds against valuation misconduct[more]

    Komfie Manalo, Opalesque Asia: Securities and Exchange Commission chief economist and director of Division of Economic and Risk Analysis (DERA) Mark J. Flannery has warned of the risks posed by market misconduct, particularly in the true valuation of assets by hedge fund managers. In his

  5. Dymon Asia's $3bn macro hedge fund lost 10.45% in January[more]

    From Reuters.com: Dymon Asia's $3.1 billion macro hedge fund lost 10.45 percent in January, performance data seen by Reuters showed, a month where many peers lost heavily after a surprise rise in the Swiss franc. Singapore-based Dymon, set up by Danny Yong, a former founding partner and chie