Schemes up alternatives exposure
Pension schemes expect their alternatives portfolios to become a third of total assets in the next few years.
Research from JP Morgan Asset Management (JPMAM), seen by schemeXpert.com sister publication Pensions Week , has revealed UK institutional investors currently allocate, on average, 28% of their portfolios to the space.
This figure is up from 21% in 2007, and respondents said it would pass 30% in the next three years.
Hedge funds are the major beneficiary of growing interest in alternatives, now accounting for 8.2% of the average UK pension scheme’s portfolio, up from 6.1% three years ago.
Despite property remaining the most popular alternative asset class, the recent slump in prices has seen the number of funds planning to up their exposure to it falling from 71% in 2007, to 56% now.
JPMAM UK institutional business chief Peter Ball (pictured) said: “The findings of this most recent survey confirm that alter natives are set to see further strong growth among pension schemes.
“Investors are becoming more comfortable investing in alternatives as their understanding of such asset classes grows.”
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