UK Pension Allocations To Hedge Funds Topped Out? Graphic of the Day

By Hedge Fund Insight staff

Over the past three years Schroders has been tracking the default defined contribution (DC) investment strategies of the UK’s top 350 listed companies every six months to monitor change in asset allocation. Schroders note that “firms are making steady progress towards more diversified investment strategies, which we believe will help deliver better outcomes for members.”

Inevitably the eye of Hedge Fund Insight is drawn to the allocations to Alternatives, wherein hedge funds are accounted for. After two-and-a -half years of regularly increasing allocations to Alternatives, the allocations to hedge funds by DC schemes of the UK’s largest companies allocations have stopped increasing. Is this level, 12.5%, the natural level given the balance of risk/reward for UK pension schemes?

Schroders dcrelease



related articles:

European Pension Fund Allocations to Hedge Funds – Infographic (Dec 2015)

Alternatives In UK DC Pension Schemes – Schroders’ Report (June 2015)

Schroders Multi-Manager Emphasise Hedge Funds Whilst In Capital Preservation Mode (Nov 2014)