Sept 2012 – Average large public pension allocates 7.5% to hedge funds in FY2012
Infovest21 on Oct 14th 2012
In its just-released Special Research Report, Infovest21 examined the asset allocation of 26 large US public pension funds which allocate at least $1 billion to hedge funds. In this sample, the average large public pension fund allocates 7.4% to hedge funds/absolute returns funds in FY2012, an increase from 6.5% in FY2011.
Average Asset Allocation of 26 Large Public Pension Funds (%)
|
FY |
Equity |
Fixed Income |
Absolute Return/ Hedge Funds |
Other |
Real Estate |
Cash/ Short Term |
| 2012 |
41.3 |
21.8 |
7.4 |
10.7 |
5.7 |
2.2 |
| 2011 |
43.8 |
22.6 |
6.5 |
9.7 |
7.0 |
1.8 |
| 2010 |
45.9 |
24.9 |
6.5 |
8.2 |
5.4 |
2.1 |
| 2009 |
46.9 |
25.9 |
6.5 |
8.5 |
5.4 |
2.5 |
The table above, which shows aggregated results for the past four fiscal years, highlights that the average allocation to equities decreased to 41.3% in FY2012 from 46.9% in 2009. The average allocation to fixed income declined from 25.9% in FY2009 to 21.8% in FY2012.
Other alternatives/private equity increased from 8.5% in FY2009 to 10.7% in FY2012. Real estate exposure fluctuated from 5.4% in FY2009 to 7.0% in 2011 and then dropped to 5.7% in FY2012.
Lois Peltz, president of Infovest21, said Infovest21 tracked the asset allocation trends for 26 large public pension funds as far back as annual results were provided. Of those, 24 were based in the US and two were based in Canada. The sampling included those pensions that allocated at least $1 billion in assets to hedge funds/funds of funds and publish their asset allocation on at least an annual basis.
Average large public pension allocates 7.5% to hedge funds in FY2012
In its just-released Special Research Report, Infovest21 examined the asset allocation of 26 large US public pension funds which allocate at least $1 billion to hedge funds. In this sample, the average large public pension fund allocates 7.4% to hedge funds/absolute returns funds in FY2012, an increase from 6.5% in FY2011.
Average Asset Allocation of 26 Large Public Pension Funds (%)
|
FY |
Equity |
Fixed Income |
Absolute Return/ Hedge Funds |
Other |
Real Estate |
Cash/ Short Term |
| 2012 |
41.3 |
21.8 |
7.4 |
10.7 |
5.7 |
2.2 |
| 2011 |
43.8 |
22.6 |
6.5 |
9.7 |
7.0 |
1.8 |
| 2010 |
45.9 |
24.9 |
6.5 |
8.2 |
5.4 |
2.1 |
| 2009 |
46.9 |
25.9 |
6.5 |
8.5 |
5.4 |
2.5 |
The table above, which shows aggregated results for the past four fiscal years, highlights that the average allocation to equities decreased to 41.3% in FY2012 from 46.9% in 2009. The average allocation to fixed income declined from 25.9% in FY2009 to 21.8% in FY2012.
Other alternatives/private equity increased from 8.5% in FY2009 to 10.7% in FY2012. Real estate exposure fluctuated from 5.4% in FY2009 to 7.0% in 2011 and then dropped to 5.7% in FY2012.
Lois Peltz, president of Infovest21, said Infovest21 tracked the asset allocation trends for 26 large public pension funds as far back as annual results were provided. Of those, 24 were based in the US and two were based in Canada. The sampling included those pensions that allocated at least $1 billion in assets to hedge funds/funds of funds and publish their asset allocation on at least an annual basis.
The full report is available by contacting Infovest21 at 212 686 6440. 150+pages. $500.
Filed in Infovest21 Special Research Report | No responses yet
