This content is from: Corner Office

Mercer: Pensions See Red Over FoHFs

On the whole, pension funds aren’t thrilled with funds of hedge funds, but that won’t stop them from pouring more into the vehicles.

On the whole, pension funds aren’t thrilled with funds of hedge funds, but that won’t stop them from pouring more into the vehicles. A new survey from Mercer Investment Consulting shows that less than one-quarter of pensions are satisfied with FoHFs, while 28% are dissatisfied. According to the survey, one-third of pension funds worldwide invests in FoHFs. Less than half of the 180 pension funds surveyed were satisfied with their FoHF manager, but 54% plan to increase their allocation to hedge funds. In fact, according to Mercer, “first generation” investors are thinking about moving some of their investments to single-strategy funds. Of those funds not currently investing in funds of hedge funds, 19% say they plan to begin.

Related Content