Tue, Apr 28, 2015
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. U.S. does not want hedge funds to invest in offshore re-insurers for tax purposes[more]

    Komfie Manalo, Opalesque Asia: The U.S. Treasury Department on Thursday introduced a new rule aimed at limiting hedge funds’ ability to reduce their tax bills by investing in insurance companies in offshore tax havens. As a general rule, the U.S. tax laws does not allow hedge funds to use off

  2. Ruling: Hedge funds suing Argentina can have access to bond offering details[more]

    Komfie Manalo, Opalesque Asia: U.S. District Judge Thomas Griesa in Manhattan ruled yesterday that hedge funds are entitled to details of a recent bond offering by Buenos Aires, reports

  3. Fund managers express concern of overvaluation in both equity and bond markets[more]

    Komfie Manalo, Opalesque Asia: According to the BofA Merrill Lynch Fund Manager Survey, investors see growing overvaluations in both

  4. Update: Wall Street has strong feelings about Jon Corzine trying to make a comeback[more]

    From Businessinsider.com.au: Former New Jersey Governor Jon Corzine is thinking about starting his own hedge fund, according to the Wall Street Journal, and because of the way his last firm imploded, Wall Street has strong feelings about that. “Truth is the larger seeders would never give him money

  5. Opalesque Exclusive: Cybersecurity and hedge funds - A manager’s experience, Part Four[more]

    Benedicte Gravrand, Opalesque Geneva: Ruane, Cunniff and Goldfarb, Inc. used to have their own IT infrastructure. Todd Ruoff, Executive Vice President in charge of trading, operations and technology, was responsible for its maintenance. Then he started looking at outsourced providers a couple of

 

banner