Pension Funds are Planning More Hedge Fund InvestmentsFollowing to a paper published by the Alternative Investment Management Association (AIMA) and CAIA Association, nearly one in every four US dollars managed by the global hedge fund industry was derived from public and private pension plans.
The hedge fund industry has grown 10 percent a year since the financial crisis, much of that from higher allocations by public and private pensions, according to an association representing hedge fund interests.
Pensions have well over $700 billion invested in hedge funds at the moment, representing about $1 of every $4 invested in these funds, the Alternative Investment Management Association said.
All told, hedge fund investments returned $1.5 trillion after fees to their investors over the past 10 years, the AIMA said.
“The Way Ahead: Helping trustees navigate the hedge fund sector” is the first in a series of papers the association will publish in response to renewed questions of hedge funds’ place in institutional portfolios.
“Rarely has there been such demand for a realistic assessment of the benefits — and also the risks — associated with hedge fund investing,” said Jack Inglis, AIMA’s CEO.Source: BenefitsPro