Pension fund alternative assets allocations now account for nearly 20% of all pension fund assets across the globe, according to a study by Towers Watson. The 2012 Global Alternative Survey notes the number as a 5% increase from 15 years ago.
The research, which includes a diverse range of institutional investors has showed that pension fund assets represent over a third (36%) of the Top 100 alternative managers’ assets, followed by wealth managers (19%), insurance companies (9%), sovereign wealth funds (6%), banks (5%), funds of funds (3%) and endowments & foundations (2%).
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Craig Baker, who headed the Towers Watson Investment research, said that pensions have always been a large investor group for alternative managers and that the trend will persist for the foreseeable future.
"For almost all of the past ten years of this research we have seen increasing allocations to alternative assets by a wide range of investors.
"Not only has the appeal of alternative assets broadened to include insurers and sovereign wealth funds, but the range of alternative assets has also increased beyond the likes of real estate and private equity to include direct hedge funds, infrastructure and commodities. It is therefore not surprising, that allocations to alternative assets by pension funds for example now account for around 19% of all pension fund assets globally, up from five per cent 15 years ago," Baker added.
In a ranking of Top 100 asset managers by pension funds, these assets have increased by around 8% from the year before to reach US$1.3 trillion.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataAccording to the Global Alternatives Survey, real estate managers continue to have the largest share of pension fund assets with 39%,followed by private equity funds of funds at 20%, private equity (14%), hedge funds (9%), infrastructure (9%), FoHFs (7%) and commodities (1%).
