UK - Hedge funds will continue to get the cold shoulder from pension schemes unless trustees' understanding of them is addressed, fund managers believe.
Gartmore Investment Management says UK pension scheme interest in alternative asset classes is being held back by the perceived risk they carry.
Head of hedge funds Martin Phipps said: “There is some education needed among pension funds – investors still don’t understand what hedge funds are, for example.”
He added that pension schemes continue to see hedge funds as a high risk investment even though the market had become much safer.
JPMorgan Fleming’s head of UK institutional investment, Arno Kitts, believes the slow is due to governance models which mean schemes can only make investment decisions after long deliberation.
But Kitts added the level of interest in alternative investments has grown “enormously” over the last 18 months, and some of this is turning into demand.
JPMorgan’s alternative investments, he said, now comprise 3% of its assets under management.
But Lane Clark & Peacock investment partner consultant Paul Haines predicts further caution from pension funds.
He said: “Trustees rightly don’t feel entirely comfortable with hedge funds and private equity, so before they put such vehicles in place, they want to monitor them.”
The Pensions Regulator (TPR) and Labour MP Stephen Kinnock and will listen to the experiences of steelworkers when transferring their pensions away from the British Steel Pension Scheme (BSPS) next week in Port Talbot.
Just Group has acquired a 75% stake in the holding company of Corinthian Pension Consulting in a bid to strengthen its professional defined benefit (DB) advisory services.
The Pensions Regulator (TPR) has exercised its production order power under the Proceeds of Crime Act 2002 for the very first time as part of a fraud investigation.
The ITN Limited Pension Scheme has named Trafalgar House as its administrator for an initial term of five years.