GLOBAL - Only 23% of pension schemes are satisfied with funds of hedge funds (FOHF) investments, a global survey by Mercer Investment Consulting has found.
Yet despite their apparent dissatisfaction, 54% of respondents said they intended to increase their allocation to hedge funds within two years, while 19% of those that did not currently invest in FOHF intended to start doing so.
The survey also found that just 58% of respondents understood their funds of hedge fund manager’s investment approach, although this varied from around a third in Europe and Japan to as much as 85% in Australia and New Zealand, where these funds have been available for longer.
When asked to rate their overall satisfaction with their funds of hedge funds manager, the survey of over 180 large pension schemes worldwide found less than half (47%) were satisfied.
Divyesh Hindocha, global head of investment consulting policy at Mercer, commented: “The lack of satisfaction expressed by investors is likely to be due to a mixture of high expectations and fund managers not explaining their strategies clearly enough."
“While funds of hedge funds are attracting a great deal of attention, many investors are unclear about what they wish to achieve by investing in them, and what the funds can realistically deliver. If investors’ objectives are unclear and their expectations are out of kilter with reality, there is scope for disappointment.”
The PPF 7800 deficit was slashed in half last month as gilt yields rose. Victoria Ticha asks if this is the start of a longer trend
Frank Field is to warn Sir Philip Green not to sell his Arcadia business without ensuring defined benefit (DB) pensions are adequately protected, PP can confirm.
Some 79% of people would like to see stricter rules and checks to ensure pension pots are secure, according to a survey by the Pensions and Lifetime Savings Association (PLSA).
An analysis of IGC annual reports finds some lacking in information on value for money, costs and charges, and investment performance. James Phillips explores the findings