Thu, May 26, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Towers Watson: pensions represent 36% of top 100 alternative manager assets

Monday, August 26, 2013
Opalesque Industry Update - A Towers Watson study has shown that pension fund alternative assets allocations are now nearly 20% of all pension fund assets across the globe. The 2012 Global Alternative Survey notes the number as a 5% increase from 15 years ago.

The research, which was conducted by Towers Watson, and which included the diverse ranges of figures and asset calculation, showed that pensions fund representing 36% of the top 100 manager assets figured into the “alternative” category.

Also noted is the wealth managers holding 19% , insurance companies holding 9%, sovereign wealth funds sitting at 6%, and banks holding at 5%, with funds of other sub-funds sitting at 3%. Endowments and foundation funds were in last at 2% of the overall tallies.

Craig Baker, who headed the Towers Watson Investment research stated the pensions have always been a large investor group for alternative managers. He noted that the trend will persist for the foreseeable future.

"For almost all of the past ten years of this research we have seen increasing allocations to alternative assets by a wide range of investors.”

Baker continued by stating: "Not only has the appeal of alternative assets broadened to include insurers and sovereign wealth funds, but the range of alternative assets has also increased beyond the likes of real estate and private equity to include direct hedge funds, infrastructure and commodities. It is therefore not surprising, that allocations to alternative assets by pension funds for example now account for around 19% of all pension fund assets globally, up from 5% 15 years ago."

Such assets increased nearly 8% from 2012 numbers and reached $1.3 trillion according to the ranking of top 100 asset managers pension funds.

Regarding alternatives, the largest share of pension was held in real estate managers with 39%. This was followed by private equity funds of funds at 20% and private equity at 14%. Hedge funds sat at 9% overall, tied with infrastructure, and edging out funds of hedge funds at 7%. Commodities were at 1% of overall.

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. Paul Tudor’s hedge fund trims fee amidst poor performance, keep investors[more]

    Komfie Manalo, Opalesque Asia: Paul Tudor’s $11.6bn hedge fund firm Tudor Investment Corp. announced on Monday it would slash down fees of one of its biggest fund to 2.25% of assets and 25% of profits amidst backlash arising from poor performa

  2. Ares Capital to buy American Capital in $3.4 billion deal[more]

    From PIOnline.com: Ares Management's business development company Ares Capital Corp. is buying troubled BDC American Capital for $3.43 billion, said a joint news release by the BDCs and another release by Ares Management. Ares Capital Corp.'s assets are expected to grow to about $13.2 billion when t

  3. Performance - Hedge fund ETFs take a battering, Have long-short credit funds delivered?[more]

    Hedge fund ETFs take a battering From ETFStrategy.co.uk: It was a blow for the hedge fund world when Hillary Clinton’s son-in-law Marc Mezvinsky announced he would be closing his Greek-focused fund after it plummeted in value by 90%, just two years after it launched. For passive investor

  4. West Virginia objects to Alpha Natural sale to hedge fund[more]

    From AP/Heraldcourier.com: West Virginia's environmental authority has filed an objection to the proposed $500 million sale of Alpha Natural Resources' assets to a hedge fund, arguing that the deal could leave the state holding hundreds of millions in reclamation liabilities. The Register-Hera

  5. Launches - Man Group and American Beacon launch new emerging debt fund, Nikko AM launches new Japan equity UCITS fund[more]

    Man Group and American Beacon launch new emerging debt fund American Beacon Advisors, an experienced provider of investment advisory services to institutional and retail markets, launched the American Beacon GLG Total Return Fund today. The Fund became effective May 20. The America