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Bailey McCann, Opalesque New York:

US public pensions' over- and under-allocations to various asset classes could mean billions of dollars flowing into real estate, private equity, real assets and other alternative asset classes soon, according to data from eVestment's Market Lens Asset Allocation Trends report.

The report shows that pensions are over allocated to public equities and fixed income which could mean significant shifts in asset flows as allocators realign with asset mix targets.

Real assets are currently under-allocated by approximately $48.91 billion. The real assets category includes real estate, infrastructure, commodities and energy/natural resources, all of which could also see positive asset flows as pensions work to meet targets.

Notably, private equity remains under-allocated relative to overall pension targets by approximately $19 billion after several years of strong fundraising in the asset class. The data suggests that fund managers can expect the robust fundraising environment to continue at least over the near term. The news is also good - but not great - for hedge funds and multi-asset investment opportunities, which combined could see about $3.24 billion in new investment from plans under allocated to these segments.

"These asset flow trends will undoubtedly impact the industry as research, due diligence and reporting requirements among allocators and managers continue to evolve to reflect the needs of these public pension p......................

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