A new survey showing major interest in alternative investments among pension funds demonstrates how alternatives are now competing with traditional asset classes like never before, claims AAA.
Boston, MA, February 07, 2012 - A new survey showing major interest in alternative investments among pension funds demonstrates how alternatives are now competing with traditional asset classes like never before, claims Alternative Asset Analysis (AAA).
The new survey by Pensions & Investments looks at the investments made by the largest 200 pension plans in the year to the end of September 2011. It was discovered that investment into alternative asset classes grew by double digits. “This is perhaps the most solid evidence we have so far that institutional investors are following the tide of movement towards alternatives, in order to diversity their portfolios against risk,” explained Anthony Johnson, an analysis partner at AAA, an alternative investment advocacy group.
The total investment in real estate, from the top pension funds increased by 26 per cent, to $212 billion, while some $34.8 billion was invested in venture capital, which was also a 26 per cent increase on the year before.
Investment in private equity grey by 16 per cent to $313 million, while commodities also proved popular with 13 per cent growth to $20.6 billion.
Fund managers have been reporting over the past couple of years that they are under increasing pressure to put their clients' money into alternative asset classes that are only very loosely correlated with the equities markets. This means that if someone has spread their investments over range of traditional and alternative investments, such as precious metals, real state and forestry, even if the equity markets should take a tumble, their alternative investments should remain strong.
AAA supports many kinds of alternative investments but is particularly keen to promote ethical options, such as sustainable forestry investment in developing countries through schemes like that run by Greenwood Management in Brazil. Investors can buy up section of sustainable managed plantation and receive returns based on sales of mature timber.
Contact:
Anthony Johnson
Alternative Asset Analysis
71 Commercial St
Boston, MA 02109-1320
617-939-9596
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