Tue, Dec 6, 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. M&A - AllianzGI to acquire Sound Harbor Partners, SS&C completes acquisition of Wells Fargo's Global Fund Services business[more]

    AllianzGI to acquire Sound Harbor Partners Allianz Global Investors (AllianzGI), an active investment manager, announced that Sound Harbor Partners, a US private credit manager led by Michael Zupon and Dean Criares, have agreed to join its fast-growing Private Debt Platform. Under the te

  2. Hunt for yield pushes more investors into riskier assets[more]

    From FT.com: Pension funds and insurance companies have increasingly embraced riskier assets in their hunt for higher returns over the past five years. Alternative assets such as property, infrastructure, private equity and hedge funds have been bought up by institutional investors in a world where

  3. People - Nectar Financial hires senior investment team, Texas A&M replaces retiring foundation investment chief, Ex-Cadwalader partner Woolery makes another sudden exit, How to become a Python coder at a top hedge fund, by the co-CTO of Man AHL[more]

    Nectar Financial hires senior investment team Nectar Financial AG, a Swiss financial technology company for wealth and asset management, has announced that it has hired two key senior leaders to spearhead its digital asset management efforts. The company also announced that it has entere

  4. Activist News - Cognizant has introductory discussion with activist investor Elliott; to review letter, Starboard Value makes huge investment in Hewlett Packard, Hedge fund calls for removal of First NBC Bank CEO[more]

    Cognizant has introductory discussion with activist investor Elliott; to review letter From Indiatimes.com: Cognizant said it had an introductory discussion with Elliott Management after receiving the activist hedge fund's letter asking for a board shakeup, a buyback, a dividend and chan

  5. Opalesque Exclusive: Ireland relaxes treatment of direct lending funds[more]

    Bailey McCann, Opalesque New York: The Irish Central Bank has relaxed its treatment of direct lending funds, according to a recently released