Oct 2011 Special Research Report: Average large public pension fund allocates 5.7% to hedge funds in FY2011
Infovest21 on Oct 30th 2011
In its just-released Special Research Report, Infovest21 finds that the average large public pension fund which allocates at least $1 billion to hedge funds/funds of funds, allocates 5.7% to hedge funds/absolute returns
funds in FY2011, an increase from 5.4% in FY2010 and 4.5% in FY2009.
Average
Asset Allocation of 25 Large Public Pension Funds (%)
| Equity | Bonds | Absolute Return/ Hedge Fund |
Other Alternative Investments |
Private Equity | Real Estate | Cash/ Short Term | Other | |
| 2011 |
48.2 |
22.4 |
5.7 |
3.9 |
5.8 |
8.2 |
1.1 |
5.1 |
| 2010 |
46.6 |
23.9 |
5.4 |
3.2 |
5.7 |
7.7 |
1.7 |
5.2 |
| 2009 |
47.5 |
23.4 |
4.5 |
2.7 |
5.5 |
8.4 |
2.5 |
5.0 |
The table above, which shows aggregated results for the past three
fiscal years, highlights that the average allocation to equities increased to
48.2% in FY2011 from 46.6% in the prior year. However, the average allocation
to fixed income declined from 23.9% in FY2010 to 22.4% in FY2011.
Private equity increased slightly from 5.5% in FY2010 to 5.8% in
FY2011. Real estate exposure dropped from 8.4% in FY2009 to 8.2% in FY2011.
Other alternatives increased from 2.7% in FY2009 to 3.9% in FY2011.
In compiling these results, Infovest21 tracked the asset
allocation trends for 25 large public pension funds as far back as annual
results were provided. Of those, 22 were based in the US and three were based
in Canada. The sampling includes those pensions that allocate at least $1
billion in assets to hedge funds/funds of funds and publish their asset
allocation on at least an annual basis. These findings make up Part 1 of the special
research report.
Part 2 includes asset allocation findings of another 18 US pension
plans whose allocations to hedge funds are under $1 billion.
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