Public Pensions See Significant Hedge Fund Asset Growth in 2013 Presentation

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Public Pensions See
Significant Hedge Fund
Asset Growth in 2013

2. •According to new information from Pensions & Investments, the leading
source of news and research for the institutional investment market,
public pension plans with assets invested in hedge funds benefited from
healthy growth last year.

3. •The recently published results of P&I’s annual survey of America’s biggest
retirement funds show a 15.1 percent increase in assets invested directly in
hedge funds for the year ending September 30, 2013, bringing the total of public
pension investment in hedge funds to $115 billion. P&I notes that in recent years,
many large public pension plans have moved significant amounts of money from
hedge funds-of-funds into direct hedge fund investments, following in the
footsteps of family offices and endowments and corporate pension plans to
become a kind of “third wave” of major institutional hedge fund investors.

4. •However, despite last year’s impressive growth of hedge fund
investments, as of September 30 the alternative investment category still
represented just 3.4 percent of all defined benefit plan assets of the
country’s 200 largest retirement funds. This signifies a mere 0.1 percent
increase from the figure of 3.3 percent reported the year before.