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

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.