Performance

Allocations to alternatives set to rise again, says Callan

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According to Callan’s 2010 Alternative Investments Survey, fund sponsors’ total portfolio allocations to alternative investment strategies nearly doubled from 11% in 2005 to 20% in 2010 as they sought greater portfolio diversification and enhanced returns. That percentage is expected to jump to 24% by 2012.

Results showed a progressive shift towards alternative asset classes — with inflows coming primarily from (domestic) US equities — a trend which may be attributable to the poor performance of equities over the past 10 years. The average (domestic) US equity target for US investors dropped 12% between 2005 and 2010 and is