Sun, Oct 23, 2016
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. 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 - U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga, Hedge fund Parvus shows hand, toppling William Hill merger deal[more]

    U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga From The fierce battle to buy Britain's biggest private equity group has come to an unexpected conclusion, with the original bidder walking away with the prize. SVG Capital has agreed

  2. Marc Lasry: Energy is still a phenomenal opportunity[more]

    From Distressed debt specialist Marc Lasry said energy debt is still a "phenomenal opportunity" because investors can get "massively overpaid" for the risk they take on. There are "huge opportunities" in the energy sector especially in restructurings, the Avenue Capital Group CEO said Tues

  3. Opalesque Exclusive: Ex-SAC manager re-emerges with market neutral hedge fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A manager re-emerged from the SAC battleground last year to launch his own hedge fund under the umbrella of New York-based investment firm Endicott Group.

  4. North America - Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation, Billionaire hedge fund titans Dinan, Lasry on election, markets and best investment ideas[more]

    Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation From Kyle Bass, founder of Hayman Capital Management, on Wednesday warned that the U.S. is headed toward so-called stagflation. Stagflation is typically described as persistently high inflation and hi

  5. Macro hedge funds up 3.3% in one week on Fed and Brexit pays off[more]

    Komfie Manalo, Opalesque Asia: Hedge funds were boosted by the strong performance of global macro funds, with the Lyxor Global Macro Index gaining 3.3% as of the week ending Oct. 11 (-1.7% YTD), Lyxor Asset Management reported. Their short on the p