European Pensions Favor Alternatives

Apr 27 2009 | 2:04am ET

European defined benefit schemes are reducing their reliance on domestic assets and increasing their allocation to non-traditional asset classes, according to a new report.

Mercer’s annual survey of pension funds reveals that schemes in the U.K. favor hedge funds, global tactical asst allocation, and active currency, while other European plans prefer commodities and high-yield bonds. Going forward, the survey suggests that these trends are set to continue with additional allocations to a broader spread of alternatives.
The survey also highlights operational risks coming under greater scrutiny.

“Many active manager appointments were reviewed and not renewed following poor performance in a market that was driven by fear rather than fundamentals,” according to Mercer. “In many cases, counterparty risk and collateral management are high on the agenda for the coming year as more and more schemes include liability-driven investments, stock lending and various derivative strategies within their portfolios.”

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…