U.K. Pensions Add £12 Billion To Hedge Funds

Dec 20 2011 | 1:02pm ET

British pension funds are pouring unprecedented billions into hedge funds, according to a new survey.

Schemes have added about £12 billion to the asset class, while the overall allocation to hedge funds has jumped to 4.1%, an increase of more than 50% in the past year alone. All told, according to the National Association of Pension Funds' annual survey, U.K. pensions have almost £33 billion invested in hedge funds.

Indeed, hedge funds have actually become more popular among British hedge funds than private equity this year. The overall private equity allocation among NAPF final salary members rose by more than a quarter to 3.8%, a shade behind hedge funds' 4.1%.

While alternatives were the biggest beneficiaries last year, U.K. equities took the biggest hit, with allocations dropping from 17.1% to just 12.2% among British pensions.


In Depth

Q&A: Rotation Capital's Rothfleisch On SPAC 2.0

Aug 11 2017 | 7:43pm ET

Corporate actions have long been a staple of event-driven investors, but activity...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Star Mountain: Private Lending in the Lower Middle-Market

Aug 14 2017 | 4:45pm ET

Private credit has become one of the most popular alternative asset classes in recent...

 

From the current issue of