Thu, Oct 23, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Average large US public pension allocates 7.4% to hedge funds

Monday, October 15, 2012
Opalesque Industry Update - In its just-released Special Research Report, Infovest21 examined the asset allocation of 26 large US public pension funds which allocate at least $1 billion to hedge funds. In this sample, the average large public pension fund allocates 7.4% to hedge funds/absolute returns funds in FY2012, an increase from 6.5% in FY2011.

FY

Equity

Fixed Income

Absolute Return/ Hedge Funds

Other
Alternative Investments/
Private Equity

Real Estate

Cash/ Short Term

2012

41.3

21.8

7.4

10.7

5.7

2.2

2011

43.8

22.6

6.5

9.7

7.0

1.8

2010

45.9

24.9

6.5

8.2

5.4

2.1

2009

46.9

25.9

6.5

8.5

5.4

2.5

The table above, which shows aggregated results for the past four fiscal years, highlights that the average allocation to equities decreased to 41.3% in FY2012 from 46.9% in 2009. The average allocation to fixed income declined from 25.9% in FY2009 to 21.8% in FY2012.

Other alternatives/private equity increased from 8.5% in FY2009 to 10.7% in FY2012. Real estate exposure fluctuated from 5.4% in FY2009 to 7.0% in 2011 and then dropped to 5.7% in FY2012.

Lois Peltz, president of Infovest21, said Infovest21 tracked the asset allocation trends for 26 large public pension funds as far back as annual results were provided. Of those, 24 were based in the US and two were based in Canada. The sampling included those pensions that allocated at least $1 billion in assets to hedge funds/funds of funds and publish their asset allocation on at least an annual basis.

Press release

bc

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   

Banner

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. Commodities - Oil wreaking havoc on small-cap energy stocks sliding 36%[more]

    From Bloomberg.com: Owning almost anything in the U.S. stock market has been a losing proposition since September. Owning smaller energy companies has been a catastrophe. Hercules Offshore Inc. and Resolute Energy Corp. are among 19 oil-and-gas equities in the Russell 2000 Index that lost more than

  2. Investing - Hedge funds favor equity long/short, Strategic bond managers hedge against further high yield sell-off[more]

    Hedge funds favor equity long/short From Securitieslendingtimes.com: Equity long/short strategies will generate good returns for hedge funds in the future, according to a panel at this year’s Risk Management Association Conference on Securities Lending in Naples, Florida. Panellists Sand

  3. Legal - Ex-hedge fund analyst weeps as judge hands down 5 year sentence, Former Columbus investment manager Steven P. Moore indicted on theft charges, SEBI confirms ban for Hong Kong hedge fund, SEC announces enforcement action against compliance officer[more]

    Ex-hedge fund analyst weeps as judge hands down 5 year sentence From Hereisthecity.com: An ex-hedge fund analyst was sentenced to 5 years in prison for his role in insider-trading scheme. The New York Post reports that former hedge fund analyst Matthew Teeple was sentenced Thursday to fiv

  4. Goldman in talks to acquire IndexIQ[more]

    From Bloomberg.com: Can Goldman Sachs put ETF investors on a liquid diet? Goldman is in talks to acquire IndexIQ, Reuters has reported. Index IQ is a small exchange-traded-fund firm known mostly for products that replicate hedge fund strategies, called "liquid alternative" ETFs. While IndexIQ has 11

  5. Other Voices: CALPERS dilemma should be a warning to hedge funds wanting institutional investors[more]

    From Ian Hamilton, founder of IDS Group. A quick comment on the CALPERS’ disinvestment from the hedge fund market and the jitters it is causing. Pension Funds should not be sheep and follow CALPERS’ decision as the issues that CALPERS has with hedge fund investments are in many ways unique t