Pension Funds Responsible For Boosting Hedge Fund Inflows

Sep 14 2006 | 12:00am ET

Pension funds were the biggest investors in alternatives last year, responsible for nearly one-third of inflows into the sector. A new report from Watson Wyatt shows alternatives adding some $250 billion in 2005, a 20% increase in assets to $1.26 trillion. Of the increase, pension funds accounted for $77 billion, with $62 billion of that going into hedge funds.

Pensions beat out high net-worth individuals as the largest investor group in alternatives in 2005. Mutual funds, insurance companies and foundations and endowments were third, fourth and fifth, respectively.

Among all investors, funds of hedge funds were the more popular destination for cash, taking in $85 billion. Real estate attracted $59 billion, and private equity funds of funds added $42 billion.
 
 


In Depth

The Benefits Of Private Debt Investing

May 7 2015 | 10:43am ET

Jeffrey Haas is chief operating officer of Old Hill Partners Inc., an SEC-registered...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

How To Generate 6% Yield In A Volatile World

May 22 2015 | 6:41am ET

Private credit comes in many different flavors, all with the common themes of over...

 

Editor's Note