While UK local authorities continue to make allocations to hedge funds, crunch time is approaching for those who went into the asset class some years ago, seeking diversification in line with the Myners’ principles and protection from equity market volatility.
|Uncertain outlook: funds of funds with UK mandates must up their game in 2012|
Whether funds of funds have delivered that – and/or delivered on their promises – is a moot point, but contrary to some reports the mood among more experienced institutional investors, while restive, seems fairly understanding. Nevertheless, some will soon have to make tough decisions about whether or not to continue with their incumbents.
Recently, the Wiltshire Pension Fund conducted a formal review of its investment in Fauchier Partners’ Jubilee Fund, and decided to place the fund on watch for 12 months, pending a review. David Anthony, head of pensions at Wiltshire, admits the decision expresses a degree of...