Thu, Sep 3, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Towers Watson: pensions represent 36% of top 100 alternative manager assets

Monday, August 26, 2013
Opalesque Industry Update - A Towers Watson study has shown that pension fund alternative assets allocations are now nearly 20% of all pension fund assets across the globe. The 2012 Global Alternative Survey notes the number as a 5% increase from 15 years ago.

The research, which was conducted by Towers Watson, and which included the diverse ranges of figures and asset calculation, showed that pensions fund representing 36% of the top 100 manager assets figured into the “alternative” category.

Also noted is the wealth managers holding 19% , insurance companies holding 9%, sovereign wealth funds sitting at 6%, and banks holding at 5%, with funds of other sub-funds sitting at 3%. Endowments and foundation funds were in last at 2% of the overall tallies.

Craig Baker, who headed the Towers Watson Investment research stated the pensions have always been a large investor group for alternative managers. He noted that the trend will persist for the foreseeable future.

"For almost all of the past ten years of this research we have seen increasing allocations to alternative assets by a wide range of investors.”

Baker continued by stating: "Not only has the appeal of alternative assets broadened to include insurers and sovereign wealth funds, but the range of alternative assets has also increased beyond the likes of real estate and private equity to include direct hedge funds, infrastructure and commodities. It is therefore not surprising, that allocations to alternative assets by pension funds for example now account for around 19% of all pension fund assets globally, up from 5% 15 years ago."

Such assets increased nearly 8% from 2012 numbers and reached $1.3 trillion according to the ranking of top 100 asset managers pension funds.

Regarding alternatives, the largest share of pension was held in real estate managers with 39%. This was followed by private equity funds of funds at 20% and private equity at 14%. Hedge funds sat at 9% overall, tied with infrastructure, and edging out funds of hedge funds at 7%. Commodities were at 1% of overall.

Press release

Bg

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. Cliff Asness attracts $360 million as liquid alternative funds hold up[more]

    From Bloomberg.com: As U.S. stocks suffered their worst month in more than three years in August, Clifford Asness’s managed futures fund was able to profit. Investors are taking notice. The $9.12 billion AQR Managed Futures Strategy Fund pulled in an estimated $360 million in net subscriptions last

  2. Performance - Einhorn and Loeb's hedge funds both decline 5% in August, Some target-date funds miss in the market turmoil[more]

    Einhorn and Loeb's hedge funds both decline 5% in August From Reuters.com: Hedge fund billionaires David Einhorn and Daniel Loeb saw their main funds lose roughly 5 percent in August during a dramatic market sell off, two people familiar with their returns said on Monday. Einhorn's

  3. Opalesque Exclusive: When the SEC calls, fund managers need to get out of their own way[more]

    Bailey McCann, Opalesque New York: New pressure is hitting alternative investment funds from all angles. So far this month both hedge fund and private equity players have seen enforcement actions, and subsequent fines over fees, disclosures, and misleading statements. Citi one of the biggest

  4. Fortress hedge fund manager David Dredge says markets trouble on the way[more]

    From AFR.com: David Dredge of global hedge fund Fortress has built a career studying, predicting and protecting against the world's major financial crises. The recent convulsions in global sharemarkets are "just the beginning" of a painful adjustment as money drains from the emerging market economie

  5. North America - Puerto Rico agency plans talks with hedge fund creditors[more]

    From WSJ.com: Puerto Rico’s Government Development Bank is planning to begin confidential debt-restructuring talks with hedge funds that own its bonds as early as next week, said a person familiar with the matter. The parties are set to discuss a plan under which the investors would lend additional

 

banner