Investment in alternatives by pension funds in OECD countries has increased from 6 per cent to 19 per cent of total assets under management from 2000 to 2012, according to research by State Street.
The study By the Numbers: The Quest for Performance, discovered a continued appetite for alternatives amongst institutional investors, despite greater concerns about return volatility…
…“Not all alternatives are created equally, and neither are the investors who turn to them in the hunt for alpha,” said State Street’s Centre for Applied Research global head Kelly McKenna.
“Today’s successful institutional manager will balance a desire for return with an appreciation for the complexity of portfolio risk as well as investment and liquidity constraints while respecting the rapid nature of market events that can implicate return objectives.”
The study was produced by the Center for Applied Research, State Street’s independent think tank, in partnership with the Fletcher School of Law and Diplomacy at Tufts University.
Read the full piece