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

Virtu Celebrates Another Year Without a Single Day of Losses

Feb 26 2015 | 9:05am ET

High-frequency trading firm Virtu Financial Inc. reported another year without a...

Lifestyle

Hedge Fund Manager Out as Minnesota Wild Minority Owner

Feb 25 2015 | 2:45pm ET

New York hedge fund manager Philip Falcone is no longer a minority owner of the...

Guest Contributor

Risk: How To Get In Front Of The Problem

Feb 26 2015 | 9:53am ET

In considering the topic of risk in the hedge fund world, specifically, the oversight...

 

Editor's Note