Pension Funds are Planning More Hedge Fund Investments
Following 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