Public pensions that increased allocations to alternatives
have been largely rewarded in experiencing higher 10-year
returns than those with smaller alternative investments,
according to a new research paper from Cliffwater.
State pension systems shifted roughly 10% of their assets
from public equities to alternatives over the five years ending
30 June 2011, keeping other asset class weights mostly
unchanged. This means that alternatives now average 20% of
total state fund assets, but individual pension plan
allocations vary widely –...