Mon, Jun 18, 2018
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. Lyxor recommends stockpicking strategies, L/S equity hedge funds well equipped for turbulent markets[more]

    Matthias Knab, Opalesque: Market developments in May saw some trend reversals across the fixed income and commodity space. On the one hand, the unfolding of the Italian political crisis coincided with a rebound of U.S. Treasuries during the second half of May. On the other hand, the rising likeli

  2. North America - George Soros: 'Everything that could go wrong has gone wrong'[more]

    From Marketwatch.com: George Soros, tell us how you really feel. 'Everything that could go wrong has gone wrong. [Trump] is willing to destroy the world.' The 87-year-old billionaire clearly isn't shy about expressing his generally liberal views and distaste for Trump's "America First" platform,

  3. Paper: The performance of stocks actively pitched by hedge funds[more]

    Using a novel dataset drawn from investment conferences from 2008 to 2013, I show that hedge funds take advantage of the publicity of these conferences to strategically release their book information to drive market demand. Specifically, hedge funds sell pitched stocks after the conferences to ta

  4. North America - US fundraising for special purpose acquisition vehicles hits record this year[more]

    From AFR.com: Special purpose acquisition vehicles (spacs) are hitting the US market at the fastest rate on record, attracting the likes of Goldman Sachs and hedge fund investor Daniel Loeb for the two largest such deals in 2018. Spacs have raised $US4.5bn so far in 2018, the largest amount fo

  5. Investing - Man Group and AQR try to take aim at private equity industry, Hedge funds poised to be winners in AT&T-Time Warner deal[more]

    Man Group and AQR try to take aim at private equity industry From FT.com: The popularity of private equity investments has prompted asset managers such as Man Group and AQR to devise strategies that aim to replicate PE returns but at a much lower cost to investors. Both companies a