Institutional Investors

Alternative allocations on the rise, says Towers Watson


Global institutional pension fund assets in the 13 major markets grew by 4% to total $28 trillion during 2011. Also on the rise in recent years are the allocations to alternatives, according to Towers Watson’s Global Pension Assets Study.

Allocations to alternatives, especially real estate and to a lesser extent hedge funds, private equity and commodities have grown from 5% to 20% since 1995, the study finds. Towers Watson says in the past decade most countries have increased their exposure to alternative assets with the US increasing them most (from 5% to 25%), followed by Switzerland (9% to