IRELAND - The weighting that Irish pension funds give alternative assets has tripled in the last year, according to a survey by the Irish Association of Pension Funds (IAPF).
The annual asset allocation survey by the IAPF, looked at how Irish pension funds are invested. It said the weighting for alternative assets had increased dramatically during 2006, from 0.8% at the end of 2005 to 2.4% at the end of 2006.
This was made up of 0.2% in forestry, 0.1% in private equity, 0.5% in direct currency holdings, 0.2% in tactical asset allocation, 1% in derivatives used for hedging and 0.5% in derivatives used for other purposes.
IAPF spokesperson Fiona Daley said: “It appears that Irish pension schemes are beginning to follow the international trend of incorporating alternative assets into their investment strategies. This is most likely in order to either reduce risk or increase returns, by diversifying away from traditional investments.”
The survey also said that Irish pension fund assets under management had grown 12.6% to €87.7bn at the end of 2006.
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