30/06/2010 Author: Shannon Hawthorne

UK pension interest in hedge funds climbs

Over 80% of UK pension funds are currently receiving education on hedge fund investment as institutional appetite for the alternatives sector continues to grow, a new HFMWeek poll has revealed.

Out of 56 UK pension funds – both public and private – surveyed, 45 stated that their trustees or committee members currently receive training on hedge funds, either specific to the sector or as part of the fund’s overall investment training scheme.

Just under half of the funds receiving training do not currently allocate to hedge funds, though approximately 27% are considering doing so.  

Last week, HFMWeek revealed that the $903.6m London Borough of Ealing Pension Fund is set to educate its committee members on allocating into the hedge fund space.

According to the minutes of the fund’s latest pension sub-committee meeting, the fund panel has agreed to receive an ‘introduction to hedge fund investment’ during its next meeting in September.

“Pension funds often use the training to validate their own thinking or to get trustees up to speed,” Robert Mercer, a principal at investment consulting firm Mercer, told HFMWeek.

“So if a fund is at the point of receiving training, it means that at least some of the trustees are positive on the idea of allocating to hedge funds, and so it’s a good sign that investment is possible.”