GLOBAL - Institutional Investors make up the 'absolute majority' of hedge fund investors for the first time, the Alternative Investment Management Association has said.
It said, while the majority of hedge fund investors had previously been high net worth individuals, the industry had now reached a tipping point - with invitational investors and pension funds playing an increasingly important role.
AIMA research manager Tom Kehoe said: "Institutional investors have been steadily increasing in significance in recent years, and we think they now account for an absolute majority of AUM. Pension funds account for about a third of that, or one-sixth overall."
Although Kehoe admitted the exact figures were estimates, they were based on data from the association's 1,200 global members throughout the hedge fund and fund of hedge fund world.
AIMA chief executive Andrew Baker said the figures highlighted the importance of the hedge fund industry to pension funds and other institutional investors.
He commented: "These figures demonstrate that the hedge fund industry plays an extremely important role globally for the institutions that look after everyone's pensions and savings.
"Institutions need risk management and stable returns at this time more than ever, and hedge funds and funds of funds are skilled at this."
Johnson Controls International has appointed XPS Pensions as investment and actuarial adviser for two of its schemes, following a competitive tender process.
Merseyside Pension Fund has allocated an initial £400m of assets to a smart sustainability fund managed by State Street Global Advisors (SSGA).
This week's top stories included exclusive coverage of The Pensions Regulator's plans to require schemes to use professional trustees.
Buck has launched a solution to help pension schemes equalise guaranteed minimum pensions (GMPs) in a cost effective way with minimum hassle.