UK - Pension funds will continue the move to invest in absolute return strategies during 2008, according to Hewitt Associates.
A majority of the fund manager audience (65%) also said the desire for active management and absolute returns would lead independent investment boutiques to take market share from mainstream investment houses during 2008.
Andy Tunningley, head of Hewitt's UK investment practice, said: "Hewitt has long been in favour of absolute return strategies and true active management, as shown by our support for unconstrained mandates and allocations to carefully selected hedge funds.
"In the context of volatile public markets, schemes really see the value that manager skill can add over and above passive management. Our clients' focus is on appointing talented investment managers, regardless of the size of the organisation."
Hewitt also found 65% of fund managers agreed hedging out risk would increase in 2008.
Tunningley added: "We are not surprised by the view that schemes will seek to hedge risk more fully, but this should not be viewed in isolation."
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