UK pensions look to alternatives amid volatility and diversification concerns

Fri Dec 3, 2010

Pension funds are open to do business with hedge funds that deliver the service they expect

In what can only be described as a cautiously optimistic post crisis-era, hedge funds may be performing but many UK investors are still sitting on the sidelines. Barry Lee, an associate in the research and development division of bFinance believes, however, that while activity in the first half of the year was quiet there is an increase in interest for both funds of funds and hedge funds.

Barry Lee, Robert Howie and William Battersby

"We are currently conducting two long/short equity manager searches in conjunction with long-only searches. This demonstrates the interest from clients in exploring managers who can perform well but also protect capital effectively," Lee notes.

Baring Asset Management’s annual poll of UK pension schemes reveals that half of pension funds surveyed have recently altered their asset allocation due to concerns about volatility, with the majority reducing exposure to equities in favour of alternatives.

ISSN: 2151-1845 / CDC10004H

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