Study: Big Public Pensions Allocate 7.5% To Hedge Funds

Oct 15 2012 | 10:05am ET

A comparison of 26 public pension funds that allocate at least $1 billion to hedge funds found that the average allocation in FY2012 was 7.4% of total assets.

The report, from Infovest21, considers the aggregrated results for the pension funds for the past four fiscal years. It showed an increase in allocation to hedge funds from 6.5% in FY2009, but a decline in allocation to equities to 41.3% in FY2012 from 46.9% in 2009. The average allocation to fixed income also declined over the monitored period, from 25.9% in FY2009 to 21.8% in FY2012.

Allocations to 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 of the 26 large public pension funds tracked, 24 were based in the US and two in Canada. The sample included 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.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...