Thursday, March 17, 2005
Useful Survey
American Banker: The Financial Services Daily
In Brief: State St.: Institutions Eying Hedge Funds
Thursday, March 17, 2005
State Street Corp. says a hedge fund survey it did shows most institutional investors intend to add to their hedge fund holdings in the next three years as they strive for better risk-adjusted returns and broader diversification.
The survey was conducted late last year and released Wednesday, the Boston banking company said. Global corporate, public, and government pension plans and endowments and foundations with combined investable assets of more than $1.2 trillion responded.
The institutions differed greatly on the preferred way to invest in this asset class.
The survey findings "support the trend that we have seen in which new entrants to the asset class choose the fund of funds approach, while those with more experience in this asset class continue to favor direct investing," Gary Enos, an executive vice president and head of alternative investment services at State Street, said in a press release.
One-third of institutional investors responding to the survey had at least 10% of their portfolios invested in hedge funds, the survey found, and half intended to have 10% or more invested in alternative strategies by 2007. About 16% said they were not invested in hedge funds, but all planned to make some allocation to the asset class by 2007. The largest increase was foreseen by public and government pension plans.
State Street provides servicing and management solutions for alternative investments like record keeping, fund accounting, valuation, risk management, and regulatory reporting. In 2002, it bought International Fund Services - a provider of fund accounting and administration as well as trade support and middle-office services for alternative investment portfolios - and today services more than $100 billion of alternative investment assets. State Street Global Advisors, the company's investment management arm, also supplies institutional investors an array of hedge fund and fund-of-funds strategies.
In Brief: State St.: Institutions Eying Hedge Funds
Thursday, March 17, 2005
State Street Corp. says a hedge fund survey it did shows most institutional investors intend to add to their hedge fund holdings in the next three years as they strive for better risk-adjusted returns and broader diversification.
The survey was conducted late last year and released Wednesday, the Boston banking company said. Global corporate, public, and government pension plans and endowments and foundations with combined investable assets of more than $1.2 trillion responded.
The institutions differed greatly on the preferred way to invest in this asset class.
The survey findings "support the trend that we have seen in which new entrants to the asset class choose the fund of funds approach, while those with more experience in this asset class continue to favor direct investing," Gary Enos, an executive vice president and head of alternative investment services at State Street, said in a press release.
One-third of institutional investors responding to the survey had at least 10% of their portfolios invested in hedge funds, the survey found, and half intended to have 10% or more invested in alternative strategies by 2007. About 16% said they were not invested in hedge funds, but all planned to make some allocation to the asset class by 2007. The largest increase was foreseen by public and government pension plans.
State Street provides servicing and management solutions for alternative investments like record keeping, fund accounting, valuation, risk management, and regulatory reporting. In 2002, it bought International Fund Services - a provider of fund accounting and administration as well as trade support and middle-office services for alternative investment portfolios - and today services more than $100 billion of alternative investment assets. State Street Global Advisors, the company's investment management arm, also supplies institutional investors an array of hedge fund and fund-of-funds strategies.
Monday, March 14, 2005
Greenwich Associates Survey (II Hedge Fund Daily 3/14/05)
Pensions, Endowments Push HF Allocations
The number of pension funds and endowments allocating money to hedge funds has nearly doubled since 2001, according to Greenwich Associates. A survey of 1,700 institutional investors found that 28% of those polled include hedge funds in their portfolios, compared with 15% in 2001. While more of those institutions are adding hedge funds, the percentage of allocations has inched up slightly, from 1.3% in 2003 to 1.6% last year.
The number of pension funds and endowments allocating money to hedge funds has nearly doubled since 2001, according to Greenwich Associates. A survey of 1,700 institutional investors found that 28% of those polled include hedge funds in their portfolios, compared with 15% in 2001. While more of those institutions are adding hedge funds, the percentage of allocations has inched up slightly, from 1.3% in 2003 to 1.6% last year.
