Deficit Issues Driving Pension Funds To Alternatives

Nearly two-thirds of pension funds and their advisers polled said they would consider greater use of alternative investments and investment methods to help reduce deficits, Henderson Global Investors has found.

Nearly two-thirds of pension funds and their advisers polled said they would consider greater use of alternative investments and investment methods to help reduce deficits, Henderson Global Investors has found. The survey of attendees at its annual institutional investment conference revealed that 64% of respondents would introduce alternative investments, with 48% saying they would allow shorting in their portfolio and 72% feeling that shorting could benefit the portfolio. In addition, 92% of those asked would permit the use of interest-rate, currency and credit overlays, and 71% would opt for investment in secured loans.

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