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.
Mark Evans has been appointed as a director at Independent Trustee Services (ITS) to lead trustee appointments in London.
The Pension Protection Fund (PPF) is consulting on changes to the actuarial assumptions it uses in valuations in a bid to better reflect the bulk annuity market, with schemes set to move into surplus on aggregate.
Private sector defined benefit (DB) schemes were 96.3% funded on a Pension Protection Fund (PPF) compensation basis at the end of July, according to the lifeboat fund's monthly index.
Conduent has completed the sale of its actuarial and human resource consulting business to private equity investor, H.I.G. Capital.