Institutional Investors

US public plans growing HF allocations, Greenwich finds


As pension funds look to shed risk, about 18% of US public pension plans intend  to significantly increase their hedge fund allocations by 2012, according to Greenwich Associates.

Although the US corporate and public pensions have struggled with historic funding shortfalls, both groups are far from paralysed in rearranging investment portfolios, according to Greenwich. And with an eye toward tougher accounting rules, companies that sponsor retirement plans are shedding risk from their investments in preparation for the inevitability of much higher cash contribution requirements.

“Corporate funds have traditionally invested much larger portions of their assets in equities, while public