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

TAKE A FREE TRIAL

The full contents of this article are available to active InvestHedge subscribers and trialists only.

To continue reading please,
take a free trialsubscribe or log in to InvestHedge.

Subscribe

Subscribers have unlimited access to all current content, including fund performance Live League Tables. Start your subscription today - click on the button below.

Subscribe now