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Opalesque Exclusive: Greenwich Associates Study finds US plan sponsors increasing hedge fund investments From Kirsten Bischoff, New York: Greenwich Associates released the 2008 US Investment Management Research Study, which indicates that as recently as Q407 US plan sponsors’ maintained a positive outlook for the future of their portfolio performance. With participants interviewed from August through October of 2007, the study encompassed 577 corporate pension plans, 234 public pension plans, and 233 endowments and foundations.

Hedge funds now portfolio mainstays Part of that positive outlook encompassed allocations into hedge funds, which have “evolved into pension portfolio mainstays” (44% of US pension plans responded that they invested in hedge funds which was up 8% from the previous year). Of those actively investing in hedge funds, endowments and foundations reported allocating 16.5% of their assets into hedge funds and corporate funds and public funds reported 4.2% and 4.1% allocations respectively.

Expected rates of return for the next five years found respondents projecting increases in every major asset class except hedge funds and private equity (both were predicted to hold steady with mean rates of return of 8.9% and 11.5% respectively). However, this does not seem to be slowing US plan sponsors, endowments or foundations from moving into these alternative asset classes. Greenw......................

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