Tue, May 3, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Majority of pension funds optimistic economy will rebound this year, says GPS survey

Thursday, February 25, 2010
Opalesque Industry Update – The majority of European pension funds have expressed optimism the economy would rebound this year, according to the latest study made by the Global Pension Study (GPS).

The study, commissioned by GPS and organized by Tilburg University, IPE and the European Pension Academy has shown that 53% of pension funds expressed optimism in the economy. The survey, which was completed in January, also showed that 15% of those polled were less optimistic this year.

Some 32% of pension funds believe the global economy will remain unchanged.

Among the top concerns expressed by the pension funds are interest rate risk, cover/solvency/funding level, and the stability of the financial system, the report said.

According to the pension funds, their key focus in the next 12 months is the tactical and medium term asset allocations. Most of the pension funds surveyed posted an average 12% returns in the most recent years.

Pension front
There has been a growing trend amongst pension funds across the globe to allocate in hedge funds as the industry regained faith into the portfolio. FT.com reported that Hewitt Associates saw inquiries from clients rise sharply as pension funds trustees scrabble to find high-performing investment strategies.

Indeed, the New York State Common Retirement Fund disclosed early this month that it had allocated some $446.3m in 10 funds, including hedge funds, private equity and other alternative investments (see Opalesque Exclusive here).

The $46bn Pennsylvania Public School Employees Retirement System invested $350m in a hedge fund, $200m in structured alpha, $250m in residential mortgage-backed securities, and $500m in emerging markets equity, in January this year, while the $460.3m Icelandic pension fund, the Festa Lífeyrissjóður increased its hedge funds exposure by 10% this year.

Bu the Dutch pension manager PGGM announced last week that is it phasing out its fund of hedge funds strategy amounting to roughly $1.5bn from its $2.3bn portfolio in favor of direct investments.

For its part, the California State Teachers’ Retirement System, the second-biggest U.S. public pension, said it was looking at commodities to boost returns and provide a hedge against inflation and slumping equities.

Industry consultant bFinance has said that a survey among pension funds revealed that majority of European and Canadian funds wanted hedge funds to further drop their fees this year. Full article: Source – PD

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. Hedge funds see $14.3bn outflows in Q1, CTAs and multi-strategy lead net inflows[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry saw net outflows of investor capital in the first quarter of the year, totaling $14.3bn, data from Preqin showed. This continues from the $8.9bn overall net outflows that funds recorded in Q4

  2. Third Point calls Q1 "catastrophic" for hedge funds[more]

    Bailey McCann, Opalesque New York: The first quarter of this year was rocky for hedge funds based on aggregate performance from the industry, but now we are beginning to hear what the managers thought of it as quarterly letters make their way to investors. Dan Loeb, CEO of New York-based $17 bill

  3. Asia - Stabilization of China's capital outflows may hinge on Janet Yellen, Fink says China to do well this year as bubble threat postponed, Chinese hedge fund to invest in India’s infrastructure[more]

    Stabilization of China's capital outflows may hinge on Janet Yellen From Bloomberg.com: Whether China’s recent stabilization of its currency and capital outflows continues -- or downside pressure reignites -- may hinge in large part on Janet Yellen. If the Federal Reserve chair sticks to

  4. …And Finally - After all, judges are human too[more]

    From Newsoftheweird.com: In March, one District of Columbia government administrative law judge was charged with misdemeanor assault on another. Judge Sharon Goodie said she wanted to give Judge Joan Davenport some files, but Davenport, in her office, would not answer the door. Goodie said once the

  5. Comment - Unmasking the men behind Zero Hedge, Wall Street's renegade blog[more]

    From Bloomberg.com: Colin Lokey, also known as "Tyler Durden," is breaking the first rule of Fight Club: You do not talk about Fight Club. He’s also breaking the second rule of Fight Club. (See the first rule.) After more than a year writing for the financial website Zero Hedge under the n